These Q&As are about strata dispute resolution and the NSW Civil & Administrative Tribunal (NCAT).
Table of Contents:
- QUESTION: A lot owner refuses to pay an order for costs as a result of a recent strata dispute resolution at NCAT. How do we enforce the order and recover the amount?
- QUESTION: During the strata dispute resolution process, if an Owners Corporation breaches court orders, what recourse does the owner have?
Question: A lot owner refuses to pay an order for costs as a result of a recent strata dispute resolution at NCAT. How do we enforce the order and recover the amount?
A lot owner took the Owners Corporation to NCAT challenging an exclusive use bylaw.
The application was dismissed, no appeal was forthcoming and the Owners Corporation was awarded a costs order in its favour. The lot owner refuses to pay.
The Owners Corporation has entered the amount as a debt against the Lot but what remedies do we have to enforce the costs order and the process involved in doing so?
Answer: To recover costs ordered to be paid by the Tribunal the amount needs to be certified by a Registrar.
You will likely need to engage the services of a lawyer as under the Civil And Administrative Tribunal Act, to recover costs ordered to be paid by the Tribunal, the amount needs to be certified by a Registrar and then filed in a court of competent jurisdiction which in turn operates as a judgement debt against the offending lot owner.
Leanne Habib
Premium Strata
E: [email protected]
P: 02 9281 6440
This post appears in Strata News #256.
Question: During the strata dispute resolution process, if an Owners Corporation breaches court orders, what recourse does the owner have?
During the strata dispute resolution process, if an Owners Corporation breaches court orders, what recourse does the owner have? As a lot owner, if I go back to NCAT it will cost me approximately $5k in legal fees.
NCAT will fine the Strata Plan approx. $5k and they get to keep the money but that does not solve my problem if the Owners Corporation still does not comply with the orders.
How can I get the orders fulfilled?
Answer: The failure by the owners corporation to comply with the NCAT Orders could be the basis upon which to seek the compulsory appointment of a strata manager.
The failure by the owners corporation to comply with the NCAT Orders could be the basis upon which to seek the compulsory appointment of a strata manager.
If successful, then there would be no strata meetings or voting for a period of usually 12 months and the compulsory agent makes all the decisions on behalf of the owners corporation and strata committee. It would then be the compulsory agent’s role to implement the Orders of NCAT.
Leanne Habib
Premium Strata
E: [email protected]
P: 02 9281 6440
This post appears in Strata News #228.
Have a question or something to add to the article? Leave a comment below.
Read next:
Are you interested in more information about strata dispute resolution or information particular to strata legislation in NSW? Visit Strata By-Laws and Legislation, Strata Law Reform OR Strata Legislation NSW pages.
Looking for strata information concerning your state? For state-specific strata information, take a look here.
Are you not sure about some of the strata terms used in this article? Take a look at our NSW Strata Glossary to help with your understanding.
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We have received the following question/comment from one of our readers:
In reading your article in Strata Life I got the distinct impression that your solution was to punish the strata managing agent, but as an agent, the strata managing agent has no power to comply with an NCAT order when the owners corporation strata committee directs him not to comply. I would like to have seen your article canvas that scenario as it is more the norm than a strata managing agent failing to comply with an NCAT order.
Leanne Habib, Premium Strata replied:
In our view the strata manager would be duty bound to attempt to implement Orders made, but, of course, the strata manager could not act against the express wishes of its principal. It should, however, take reasonable steps to advise the Owners Corporation of its obligations to comply with such orders or take steps to appeal an order where there are grounds for appeal. But not taking any action in relation to orders in our view does not address the issues.
We have received the following question from one of our readers:
Could you please include in your article if the Owners Corporation is allowed to decide to use the Owners Corporation’s funds to employ a lawyer for the Tribunal? Or is the default presumption parties can’t have a lawyer and they have to seek leave from the Tribunal if they want one and have a good reason.
Allison Benson, Kerin Benson Lawyers replies:
The provisions of section 103 of the Strata Schemes Management Act 2015 apply as does regulation 26 of the Strata Schemes Management Regulation 2016. Even after these are complied with anyone representing another entity must seek leave in NCAT.