- This topic has 2 replies, 2 voices, and was last updated 6 years, 3 months ago by .
-
Topic
-
Hi there,
We’re about to head into NCAT for a hearing and the SC voted to authorise expenditure for proper legal advice out of strata funds (we will try to recoup the costs via a costs order or through our insurance). The owner with whom we are in dispute, a member of the committee, was invited to the meeting but informed that she was not allowed to vote on the matter due to her pecuniary interest (this was on advice from the proposed lawyer).
She protested (as expected and we had a majority anyway) and has requested that “all contributions made by me up to this point and in the future (be) quarantined so that my contributions may not be used against me in this legal matter and any matters related to it now or in the future.”
Are we required to do this? (not that we will be using them “against” her!!)
I read the post regarding where costs had already been awarded against the OC and an appeal was being considered, however we have yet to have our formal hearing (we’ve been through Conciliation and Group Hearing stage) and have simply engaged a lawyer to review our submission and advise accordingly. We will represent ourselves at the hearing.
Many thanks for your always wise counsel xxx
-
Replies
-
There are provisions under Section 90 of NSW strata law (below) that if costs are awarded against the OC and in favour of the owner, then a special levy has to be raised to cover the costs and the ‘winning’ owner doesn’t have to contribute.
Therefore there is no need to ‘quarantine’ the owner’s levies – if she wins, she doesn’t have to pay.
I’m curious about the ‘pecuniary interest’ consideration, even though it was moot. I’m not sure that simply being in dispute with the Owners Corp is a conflict of interest, as all the committee members are effectively in the same boat.
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.
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.
- You must be logged in to reply to this topic.