8 HOPE STREET ROSEHILL

EQUITY – Adoption of referee report – Proposed modification – Whether referee erred in failing to take into account outstanding levies in determining reasonable Owners Corporation budget – Failure to draw referee’s attention to outstanding levies – Costs of proceedings before referee when neither party is successful – Costs of notices of motion – Whether second defendant “surrendered”

COSTS – application for indemnity costs – Calderbank letter – whether proposal contained a real and genuine element of compromise – late amendment to pleading – whether late amendment caused defendant any disadvantage – cost consequences of unjustifiable failure to bring proceedings under Strata Schemes Management Act 1996 (NSW)

STRATA TITLE – application by lot owner to bring derivative action at general law on behalf of owners corporation – exceptions to rule in Foss v Harbottle – whether owners corporation acted ultra vires in making payment of legal fees from sinking fund – whether in the interests of justice that the plaintiff bring a derivative action – whether payment by lot owner to owners corporation appropriated to debt in respect of sinking fund levies – principles of appropriations of debts.