Tan v The Owners Strata Plan 22014 (No 2) [2015] NSWSC 1920

Supreme Court New South Wales

Medium Neutral Citation: Tan v The Owners Strata Plan 22014 (No 2) [2015] NSWSC 1920 Hearing dates: 14 October 2015 Date of orders: 17 December 2015 Decision date: 17 December 2015 Jurisdiction: Equity Before: Robb J Decision: Parties are to bring in short minutes of order to reflect these reasons for judgment. Catchwords: PROCEDURE – costs – whether to order owners corporation to indemnify plaintiffs for their costs – plaintiffs members of executive committee – NCAT orders vesting all functions of owners corporation in strata manager – apparent inability of owners corporation to appeal – rule in Foss v Harbottle applies to owners corporations – whether interests of justice exception to the proper plaintiff rule satisfied – owners corporation ordered to indemnify plaintiffs but not for costs incurred in pursuit of plaintiffs' own interests

PROCEDURE – costs – whether plaintiffs should pay the third defendant's costs – not appropriate to order plaintiffs to pay third defendant's costs – third defendant effectively appointed as the contradictor by the court – provisionally, the third defendant entitled to an indemnity from the owners corporation - owners corporation given leave to make submissions on whether it should be ordered to indemnify third defendant Legislation Cited: Civil and Administrative Tribunal Act 2013 (NSW) Civil Procedure Act 2005 (NSW) Corporations Act 2001 (Cth) Strata Schemes Management Act 1996 (NSW) Supreme Court Act 1970 (NSW) Cases Cited: 2 Elizabeth Bay Road Pty Ltd v The Owners – Strata Plan No 73943 [2014] NSWCA 409; (2014) 88 NSWLR 488 Aliprandi v Griffiths Vintners Pty Ltd (in liq) (1991) 6 ACSR 250 APX Projects Pty Ltd v The Owners – Strata Plan No 64025 [2015] NSWSC 1250 Australian Securities and Investments Commission v Farley [2001] NSWSC 326; (2001) 51 NSWLR 494 Biala Pty Ltd v Mallina Holdings Pty Ltd (1993) 13 WAR 83 Buzrio Pty Ltd v Consumer, Trader & Tenancy Tribunal [2009] NSWSC 836 Buzrio Pty Ltd v Consumer, Trader and Tenancy Tribunal (No 2) [2009] NSWSC 937 Carpenter v Pioneer Park Pty Ltd (in liq) [2004] NSWSC 1007; (2004) 51 ACSR 299 Carre v Owners Corporation – SP 53020 [2003] NSWSC 397; (2003) 58 NSWLR 302 Eastmark Holdings Pty Ltd v Kabraji [2013] NSWSC 1763; (2013) 97 ACSR 161 Farrow v Registrar of Building Societies [1991] 2 VR 589 Fiduciary Ltd v Morningstar Research Pty Ltd [2005] NSWSC 442; (2005) 53 ACSR 732 Hill v King (1993) 31 NSWLR 654 Meagher v Stephenson (1993) 30 NSWLR 736 Oates v Consolidated Capital Services Ltd [2009] NSWCA 183; (2009) 76 NSWLR 69 Re the Minister for Immigration and Ethnic Affairs; ex parte Lai Qin (1997) 186 CLR 622 Re Wan Jia (Australia) International Development Pty Ltd [2012] NSWSC 1007 Reading Entertainment Australia Pty Ltd v Whitehorse Property Group Pty Ltd (prov liq apptd) [2007] VSCA 309 Tan v The Owners Strata Plan No 22014 [2015] NSWSC 71 The Owners – Strata Plan No 70798 v Bakkante Constructions Pty Ltd [2014] NSWCA 410; (2014) 88 NSWLR 513 The Owners Corporation SP 70798 v Bakkante Constructions Pty Ltd [2013] NSWSC 848 The Owners Strata Plan No 73943 v 2 Elizabeth Bay Road Pty Ltd [2013] NSWSC 1769; (2013) 17 BPR 32,475 Wallersteiner v Moir (No 2) [1975] QB 373 Wood v Links Golf Tasmania Pty Ltd [2010] FCA 570 Category: Costs Parties: Patrick Tian Teng Tan (first plaintiff) Ian Paterson Walters (second plaintiff) Rose Sok Kio Tan (third plaintiff) Owners Corporation Strata Plan No 22014 (first defendant) Whelan Property Group Pty Ltd (second defendant) Janette Daisy Porter (third defendant) Representation: Counsel: N Cotman SC (plaintiffs) D Russell (solicitor) (first and second defendants) D Hand (third defendant)