#25840
Jimmy-T
Keymaster

    Yes, it depends on the outcome.  Let me put this another way, under the new laws, if a Lot Owner takes the Owners Corp (as represented by the strata committee) to the Tribunal or a court of law and loses, and costs are awarded against them, then they pay the costs and the Owners Corp, meaning the other owners, pay nothing.

    But if an owner wins a case against the owners corp and costs are awarded against the OC, the owners corp may have to, in the case of court action (Section 90, below), and must, in the case of a tribunal (Section 104), raise a special levy that excludes the owner who has won the case against them.

    You can’t ask the owners corporation to pay part of the costs of someone who has unsuccessfully brought a case against them.  Similarly, you can’t expect an owner who has won a case against the owners corp to pay a share of the costs of fighting him or herself.

    As for strata management fees, the ‘winning’ owner can ask for costs to be attributed to the owners corp so that they don’t have to pay their share, and they might include schedule B fees.  But it’s not in the interests of good management for the cost of every dispute to be automatically apportioned according to who is on which side.

     

    90 Contributions for legal costs awarded in proceedings between owners and owners corporation
    (1) This section applies to proceedings brought by one or more owners of lots against an owners corporation or by an owners corporation against one or more owners of lots (including one or more owners joined in third party proceedings).
    (2) The court may order in the proceedings that any money (including costs) payable by an owners corporation under an order made in the proceedings must be paid from contributions levied only in relation to the lots and in the proportions that are specified in the order.
    (3) The owners corporation must, for the purpose of paying the money ordered to be paid by it, levy contributions in accordance with the terms of the order and must pay the money out of the contributions paid in accordance with that levy.
    (4) This Division (other than provisions relating to the amount of contributions) applies to and in respect of contributions levied under this section in the same way as it applies to other contributions levied under this Division. 

     

    104 Restrictions on payment of expenses incurred in Tribunal proceedings
    (1) An owners corporation cannot, in respect of its costs and expenses in proceedings brought by or against it for an order by the Tribunal, levy a contribution on another party who is successful in the proceedings.
    (2) An owners corporation that is unsuccessful in proceedings brought by or against it for an order by the Tribunal cannot pay any part of its costs and expenses in the proceedings from its administrative fund or capital works fund, but may make a levy for the purpose.
    (3) In this section, a reference to proceedings includes a reference to proceedings on appeal from the Tribunal.

    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.