Diaspora Holdings Pty Ltd v The Owners – Strata Plan No. 68608 [2018] NSWCATCD 52

Civil and Administrative Tribunal New South Wales Medium Neutral Citation: Diaspora Holdings Pty Ltd v The Owners – Strata Plan No. 68608 [2018] NSWCATCD 52 Hearing dates: 16 January 2018 & 26 March 2018 Date of orders: 04 September 2018 Decision date: 04 September 2018 Jurisdiction: Consumer and Commercial Division Before: D G Charles, Senior Member Decision: (1) The proceedings constituted by File Nos SC 17/24808 and SC 17/35536 are dismissed.

(2) The applicant, Diaspora Holdings Pty Ltd, and ClarkeKann Lawyers, jointly and severally, are to pay the costs of the respondent, The Owners – Strata Plan No. 68608, in both proceedings from 1 September 2017 on the indemnity basis as agreed or as assessed in accordance with the applicable costs assessment legislation; otherwise, the parties are to bear their own costs of both proceedings. Catchwords: STRATA – one share proprietary company as applicant in two proceedings – prior bankruptcy of the shareholder and director – competency to bring the proceedings if power vacuum at Board level – whether the solicitors acting in the proceedings have a valid retainer – whether ratification can cure defects in authority COSTS – exercise of discretion – special circumstances – indemnity costs – costs awarded against a non-party Legislation Cited: Strata Schemes Management Act 2015 (NSW) Environmental Planning & Assessment Act 1979 (NSW) Strata Schemes Management Act 1996 (NSW) Strata Schemes (Freehold Development) Act 1973 (NSW) Civil and Administrative Tribunal Act 2013 (NSW) Corporations Act 2001 (Cth) Bankruptcy Act 1966 (Cth) Civil Procedure Act 2005 (NSW) Cases Cited: Wrigley v Owners Corporation SP 53413 [2017] NSWCATAP 100 Wood v Inglis (2008) 68 ACSR 420; [2008] NSWSC 1147 Tara Communications Group Pty Ltd v Simons Ravden Pty Ltd [2012] NSWSC 862 Amir Asharifinia v Mohammed Reza Asharifinia [2012] NSWCA 500 Hillig v Darkinjung Pty Ltd (No 2) [2008] NSWCA 147 Harry S Bagg's Liquidation Warehouse Pty Ltd v Whittaker (1982) 44 NSWLR 421 Pegler v Dale [1975] 1 NSWLR 265 Daemar v Industrial Commission of New South Wales (No 2) (1990) 22 NSWLR 178 Kuenigl v Donnersmarch [1955] 1QB 515 Boston Deep Sea Fishing & Ice Co v Farnham (Inspector of Taxes) [1957] 1 WLR 1051 Ghosen v Principle Focus Pty Limited [2008] VSC 574 Massey v Wales (2003) 57 NSWLR 718 Official Trustee in Bankruptcy v Buffier (2005) 54 ACSR 767 Hooker Investments Pty Ltd v Email Ltd (1986) 10 ACLR 443 Commissioner of Taxation v Patcorp Investments Ltd (1976) 140 CLR 247 Grant v John Grant & Sons Pty Ltd (1950) 82 CLR 1 Calabretta v Redpen Developments Pty Ltd (2010) 183 FCR 47 Samootin v Shea [2010] NSWCA 371 McEvoy v Body Corporate for No 9 Port Douglas Road [2013] QCA 168 Alexander Ward & Co Ltd v Samyang Navigation Co Ltd [1975] 2 All ER 424 Fox v Commissioner of Police [2016] NSWCATAD 77 Ruddock v Vardalis (No 2) (2001)115 FCR 229 Williams v Lewer [1974] 2 NSWLR 91 Mergerditchian v Kurmond Homes Pty Ltd [2014] NSWCATAP 120 CPD Holdings Pty Ltd t/as The Bathroom Exchange v Baguley [2015] NSWCATAP 21 Citadin Pty Ltd (No. 2) v Eddie Azzi Australia Pty Ltd & General Pants Co Pty Ltd [2001] NSWADTAP 31 Obeita v Australian College of Professionals Pty Ltd [2014] NSWCATAP 38 at [81] Brodyn Pty Ltd v Owners Corporation – Strata Plan 73019 (No. 2) [2016] NSWCATAP 224 Oshlack v Richmond River Council [1998] HCA 11 Re Gardiner ex parte Orgill (1890) 16 VLR 641 Heath v Greenacre Business Park Pty Ltd [2016] NSWCA 34 Mendonca v Tonna [2017] NSWCATAP 176 Texts Cited: JD Heydon and MJ Leeming, Jacob's Law of Trusts in Australia 8th Edition, LexisNexis Butterworths Australia 2016 Ritchie's Uniform Civil Procedure NSW, Lexis Nexis Butterworths Australia 2018 Category: Principal judgment Parties: Diaspora Holdings Pty Ltd (applicant) The Owners – Strata Plan No. 68608 (respondent) ClarkeKann (Lawyers for Diaspora Holdings Pty Ltd) Representation: Counsel: E Peden (Diaspora Holdings Pty Ltd) D Knoll (The Owners – Strata Plan No. 68608) S Docker (ClarkeKann)