An owners corporation may recover legal costs and disbursements as 'expenses' under s 80(1) of the Strata Schemes Management Act 1996 (NSW), but only to the extent that such costs are reasonably incurred and reasonable in amount, with the onus on the owners corporation to prove this. The right to recover expenses under s 80(1) is a substantive right cumulative upon any costs order, and is not limited by restrictions on costs orders in the Small Claims Division or the Tribunal. However, expenses must be claimed in the same proceedings as the claim for contributions. The difference between party and party costs and actual expenditure is not recoverable. There is a split in the Court on whether recovery extends to costs incurred in Tribunal proceedings and costs exceeding those available under court costs orders.
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