The Owners - Strata Plan No 87639 v Karimbla Properties (No4) Pty Ltd (No 2) [2025] NSWSC 107

Supreme Court New South Wales

Medium Neutral Citation: The Owners - Strata Plan No 87639 v Karimbla Properties (No4) Pty Ltd (No 2) [2025] NSWSC 107 Hearing dates: 12 and 18 February 2025 Date of orders: 19 February 2025 Decision date: 19 February 2025 Jurisdiction: Equity - Technology and Construction List Before: Stevenson J Decision: Defendants' motion for security for costs dismissed with costs Catchwords: COSTS – security for costs – relevant factors – where application made by defendant builder that plaintiff owners corporation provide security – whether reason to believe owners corporation could not meet adverse costs order – whether security should be ordered as a matter of discretion – where defendant builder contended that plaintiff owners corporation's financial records were inaccurate as not having made provision for repair of defects necessary to ensure safety – whether implicit in that contention that such defects in fact exist COSTS – security for costs – owners corporation – factors relevant to determination of whether there is reason to believe an owners corporation could not meet an adverse costs order CORPORATIONS – corporate character – nature of an owners corporation – difference between owners corporation and ordinary corporations Legislation Cited: Australian Securities and Investments Act 2001 (Cth) Corporations Act 2001 (Cth) Home Building Act 1989 (NSW) Strata Schemes Management Act 2015 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Broadway Plaza Investments Pty Ltd v Broadway Plaza Pty Ltd [2019] NSWSC 1082 Cody v Live Board Holdings Pty Ltd (No 2) [2017] NSWSC 308 Cornelius v Global Medical Solutions Australia Pty Ltd; Farag v Global Medical Solutions Australia Pty Ltd [2014] NSWCA 65 Great Barrier Reef Yacht Club Villas Pty Ltd v Insurance Australia Limited [2024] QSC 320 Green Camel Pty Ltd v Urban Ecological Systems Ltd [2017] NSWSC 362 Idoport Pty Limited v National Australia Bank Limited; Idoport Pty Limited & Market Holdings Pty Limited v Argus; Idoport Pty Limited "JMG" v National Australia Bank Limited [2001] NSWSC 744 In the matter of Eastmark Holdings Pty Limited (receivers and managers appointed) and 1 Denison Street Holdings Pty Ltd (receivers and managers appointed); In the matter of Eastmark Holdings Pty Limited (receivers and managers appointed) (subject to a deed of company arrangement) [2015] NSWSC 2071 In the matter of Felan's Fisheries Pty Limited [2016] NSWSC Laundry Coin-Wash Nominees Pty Ltd v Dunlop Olympic Ltd (1985) ATPR 40-584 Owners Corporation Strata Plan 64970 v Austruc Constructions Limited [2007] NSWSC 778 Owners-Strata Plan No 50530 v Walter Construction Group Ltd [2001] NSWSC 820 Strata Plan 94417 trading as The Owners-Strata Plan 94417 v TC Build [2021] NSWSC 1284 The Owners - Strata Plan 5709 v Andrews [2009] NSWCA 189 The Owners - Strata Plan 64415 v Serman [2017] NSWSC 806 The Owners - Strata Plan No 87639 v Karimbla Properties (No4) Pty Ltd [2025] NSWSC 58 The Owners – Units Plan No 1917 v Koundouris [2014] ACTSC 269 Category: Procedural rulings Parties: The Owners - Strata Plan No 87639 (Plaintiff/Respondent) Karimbla Properties (No4) Pty Ltd ACN 102165195 (First Defendant) Karimbla Construction Services Pty Ltd ACN 093419875 (Second Defendant/First Applicant) Karimbla Construction Services Pty Ltd (NSW) ACN 152212809 (Third Defendant/Second Applicant) Representation: Counsel: F Corsaro SC / C Chiam (Plaintiff/Respondent) G A Sirtes SC / S Steinhoff (Defendants/Applicants)