Owners Corporation PS418693K v Contract Control Services & Ors [2025] VCC 1586 | Case summary

County Court of Victoria|2025-10-31

For the reasons set out above, I am not satisfied that the material before the Court is sufficiently persuasive to permit a rational belief to be formed that, if ordered to do so, the OC would be unable to pay CCS' costs, if it were to be unsuccessful in its claim. The 'threshold question' is therefore not satisfied in favour of CCS.
If it were, I would exercise my discretion to refuse the application. In balancing factors of the nature of the proceeding, public interest and merits, I conclude that the OC would suffer a greater injustice if it is prevented from pursuing its claim, than CCs' risk of being unable to recover its costs.
I order that the application is dismissed.

[1] Affidavit of Stefan Seketa dated 24 March 2025, [8] - [13].

[2] Livingspring Pty Ltd v Kliger Partners [2008] VSCA 93; (2008) 20 VR 377; Colmax Glass Pty Ltd v Polytrade Pty Ltd [2013] VSC 311 ('Colmax'); Trility Pty Ltd v Ancon Drilling Pty Ltd [2013] VSC 577; US Realty Investments LLC #1 v Need [2013] VSC 590.

[3] Great Barrier Reef Yacht Club Villas Pty Ltd v Insurance Australia Ltd [2024] QSC 320, [69]-[110].

[4] The Owners - Strata Plan No 87639 v Karimbla Properties Pty Ltd [2025] NSWSC 107 [1], [9] - [11] ('OC v Karimbla').

[5] Australian Cement Holding Pty Ltd v Adelaide Brighton Ltd [2001] NSWSC 645 [5] - [6].

[6] See above n 2; Ballymoss Pty Ltd v Kollaras & Co Pty Ltd (No 4) [2023] VCC 1268, 186.

[7] Body Corporate St James Apartments v Renaissance Assets Pty Ltd [2004] VSC 438; (2004) 11 VR 41, at [30] (Mandie J), interpreting then s 28(d) of the Subdivision Act 1988 (Vic). See now, Subdivision Act 1988 (Vic) s 30.

[9] OC v Karimbla (n 4) [28] - [30], citations omitted.

[10] OC v Karimbla (n 4) Ibid [31] - [32], citations omitted.

[11] In the matter of Eastmark Holdings Pty Ltd [2015] NSWSC 2071 ('Eastmark Holdings').

[13] Owners-Strata Plan No 50530 v Walter Construction Group Ltd [2001] NSWSC 820 ('Walter Construction')..

[14] Eastmark Holdings (n 12) [1], [7].

[15] Eastmark Holdings (n 12) [32].

[16] Scotia Property Maintenance Pty Ltd v Owners Corporation Plan No. PS316440K (Owners Corporations) [2021] VCAT 123.

[17] May v Owners Corporation PS519798G (Owners Corporations) [2017] VCAT 1759.

[18] Webb v Owners Corporation PS621796Q (Owners Corporations) [2016] VCAT 268; Owners Corporation 1 Plan No. PS440878V & Ors v Dual Homes Victoria Pty Ltd (Owners Corporation) [2011] VCAT 211.

[19] The Owners - Strata Plan 64415 v Serman [2017] NSWSC 806 [151].

[20] Timbercorp Finance Pty Ltd (in liquidation) v Tomes [2015] VSCA 332 (McLeish JA) [16]; Façade Treatment Engineering Pty Ltd (in liq) v Brookfield Multiplex Constructions Pty Ltd [2015] VSCA 169 [11], [14].

[21] Owners Corporation v Seascape Construction Pty Ltd [2016] VCAT 1870 ('OC v Seascape').

[23] Law Institute of Victoria submission to the Serious Invasions of Privacy in the Digital Era (ALRC Report 123), tabled on 3 September 2014, Serious Invasions of Privacy in the Digital Era (ALRC Report 123) | ALRC.

[24] Macquarie Dictionary Online, 2025, Macquarie Dictionary Publishers, an imprint of Pan Macmillan Australia Pty Ltd, macquariedictionary.

[25] VM Romano Construction Group Pty Ltd v BCG (Aust) Pty Ltd (County Court of Victoria, Judge Burchell, 3 March 2023) cited in VM Romano Construction Group Pty Ltd v BCG (Aust) Pty Ltd [2023] VSCA 312.

[27] Body Corporate St James Apartments v Renaissance Assets Pty Ltd [2004] VSC 438; (2004) 11 VR 41, at [30] (Mandie J), interpreting then s 28(d) of the Subdivision Act 1988 (Vic); now Subdivision Act 1988 (Vic) s 30.

[28] For a detailed examination see the excellent book by P Britton and M Bell, Residential Construction Law, 2nd ed., 2025, Hart Publishing.

[29] Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288 [2014] HCA 36; (2014) 313 ALR 408.

[30] Victoria, Parliamentary Debates, Legislative Assembly, 4 September 2020, 2124 (Lily D'Ambrosio, Minister for Energy, Environment and Climate Change, Minister for Solar Homes)

[31] State of Victoria (Department of Transport and Planning) v L.U. Simon Builders Pty Ltd [2025] VSCA 52 [11]-[16].

[32] Victoria, Parliamentary Debates, Legislative Assembly, 4 September 2020, 2125 (Lily D'Ambrosio, Minister for Energy, Environment and Climate Change, Minister for Solar Homes); cited in State of Victoria (Department of Transport and Planning) v L.U. Simon Builders Pty Ltd, ibid [16].

[34] The Second Leaman Affidavit dated 21 May 2025.

[35] Parliament of Victoria, Cladding Safety Victoria Annual Report 2023:24 (Report, 12 September 2024) 4 .

[36] Hogan v Hinch (2011) 243 CLR 506 [31].

[37] Szwarcbord v Charbord Investments Pty Ltd [2024] VSCA 92 [61].

Court Civil Procedure Rules 2018

Building Contracts Act 1995

Corporations Act 2006

Schemes Management Act 2015

Owners-Strata Plan No 50530 v Walter Construction Group Ltd_ [2001] NSWSC 820; Scotia Property Maintenance Pty Ltd v Owners Corporation Plan No. PS316440K (Owners Corporations) [2021] VCAT 123; May v Owners Corporation PS519798G (Owners Corporations) [2017] VCAT 1759; Webb v Owners Corporation PS621796Q (Owners Corporations) [2016] VCAT 268; Owners Corporation 1 Plan No. PS440878V & Ors v Dual Homes Victoria Pty Ltd (Owners Corporation) [2011] VCAT 211; The Owners - Strata Plan 64415 v Serman [2017] NSWSC 806; Timbercorp Finance Pty Ltd (in liquidation) v Tomes [2015] VSCA 332; Façade Treatment Engineering Pty Ltd (in liq) v Brookfield Multiplex Constructions Pty Ltd [2015] VSCA 169; Owners Corporation v Seascape Construction Pty Ltd [2016] VCAT 1870; VM Romano Construction Group Pty Ltd v BCG (Aust) Pty Ltd [2023] VSCA 312; Body Corporate St James Apartments v Renaissance Assets Pty Ltd [2004] VSC 438; (2004) 11 VR 41; Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288 [2014] HCA 36; (2014) 313 ALR 408; Hogan v Hinch (2011) 243 CLR 506; Szwarcbord v Charbord Investments Pty Ltd [2024] VSCA 92; Interwest Ltd v Tricontinental Corp Ltd (1991) 9 ACLA 1218; Impex Pty Ltd v Crowner Products Ltd (1994) 13 ACSR 440; Ariss v Express Interiors Pty Ltd (in liq) [1996] 2 VR 507

Owners Corporation PS418693K v Contract Control Services & Ors

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