Legal Costs in Pre-Litigation Mediation Not Recoverable
📌 In brief
The NSW Civil and Administrative Tribunal ruled that legal costs incurred in a pre-litigation mediation cannot be recovered as damages under the Strata Schemes Management Act 2015 (NSW). This decision affects how disputes over strata properties are handled and the recoverability of costs associated with resolving these disputes.
📚 Full judgment
The summary, holding and questions above are VadeLab’s own material. The official decision itself is published by the court, and we do not reproduce it on this page.
📄 Read the full judgment⚖️ View on the official court website ↗
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The legal costs incurred in a pre-litigation mediation are not recoverable as damages under ss 106(5) and 232 of the Strata Schemes Management Act 2015 (NSW).
❌ Tends to be rejected
- The respondent argued that the legal costs incurred in the mediation were properly claimable as special damages.
- The court considered that the prohibition on recovery of mediation costs was applicable and that the respondent failed to establish that the costs were not associated with the mediation.
- The respondent did not provide clear evidence to differentiate the costs associated with the mediation from those not related to it.
- The court found that the decision to order payment of the costs associated with the mediation was not fair and equitable and against the weight of evidence.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What was the dispute about?
The dispute was about whether the legal costs incurred in a pre-litigation mediation could be recovered as damages under the Strata Schemes Management Act 2015 (NSW).
Which laws or rules were applied?
The Strata Schemes Management Act 2015 (NSW) ss 106(5) and 232 were applied in this decision.
Was the decision for or against the person who brought the case?
The decision was against the person who brought the case.
What does this mean for someone in a similar situation?
For someone in a similar situation, this means that legal costs incurred in a pre-litigation mediation are unlikely to be recoverable as damages under the Strata Schemes Management Act 2015 (NSW).
What evidence or documents mattered?
The judgment does not specify the evidence or documents that mattered.