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There have been two recent (2016) Supreme Court cases in NSW that held that an owner can’t bring an action in negligence or nuisance against the OC. That is, the OC does not owe an independent common law duty of care to a lot owner to maintain and repair the common property. The two cases are James and McElwaine.
So if the insurance position put by Austman is correct (they will only pay out if the OC was negligent), there would currently be no basis for a claim at common law in NSW.
However, section 106(4) of the NSW Act gives an owner a statutory right of action against the OC to recover losses arising from the OC’s failure to maintain and repair the common property.
The important thing is to make sure that the OC’s insurance covers the OC for claims under section 106(4). Our OC’s insurance has paid out, but the terms of our insurance may be different to Austman’s. Any owner should also maintain their own insurance, it would be very foolish not to.