When “Winning” Doesn’t Mean Recovering Costs in Strata Disputes
- leigh_oliver
- Apr 19
- 3 min read
It’s a common assumption in disputes:
👉 If I win, I’ll get my costs back.
But in strata matters, that assumption doesn’t always hold true.
A recent decision from the State Administrative Tribunal — Couper and Crugnale — is a clear reminder that success does not automatically entitle you to recover your costs.
The Background
The case arose from a dispute between owners involving:
A caravan being parked on common property
Short-stay (Airbnb-style) use of a lot
Alleged breaches of scheme by-laws
The applicants pursued enforcement action and were partly successful, with the Tribunal making declarations that certain by-laws had been breached.
However, the outcome stopped short of full enforcement orders.
The Costs Claim
Following the decision, one of the applicants sought to recover:
$5,477.70 in personal costs (including legal fees, travel, and time)
$3,000 to be paid to the strata company
The reasoning was straightforward:
👉 These costs arose because of the other party’s conduct, so it would be unfair for them to bear the financial burden.
The Legal Position: Not What Many Expect
Under the State Administrative Tribunal Act 2004 (WA), the starting point is very different to traditional court proceedings:
Each party is expected to bear their own costs.
Costs are not automatically awarded to the “successful” party. Instead, the Tribunal has discretion and will only award costs where it is:
👉 Fair and reasonable in all the circumstances
Why Were Costs Refused?
Despite the applicant achieving some success, the Tribunal declined to award any costs.
Here’s why:
1. The Dispute Was Genuine
The issues raised were not trivial. They involved:
Interpretation of by-laws
Use of common property
Short-stay accommodation
The Tribunal accepted that both parties had legitimate grounds to pursue and defend their positions.
2. No Unreasonable Conduct
A key factor in awarding costs is whether a party has behaved poorly—such as:
Acting unreasonably
Causing delays
Failing to comply with processes
In this case:
👉 Neither party’s conduct justified a departure from the usual rule.
3. Partial Success Isn’t Enough
While the applicant succeeded in obtaining declarations, they did not achieve all the outcomes sought.
Importantly:
Success alone does not justify a costs order in Tribunal proceedings.
4. Lack of Evidence for Additional Claims
The claim for $3,000 to be paid to the strata company failed for a simple reason:
👉 There was no evidence those costs were actually incurred
Additionally, the strata company itself did not seek recovery.
Key Takeaways for Strata Managers and Owners
✔️ Expect to Pay Your Own Costs
The Tribunal system is designed to be accessible and cost-effective—meaning cost recovery is not the norm.
✔️ Success Doesn’t Guarantee Reimbursement
Even if you “win” part of your case, you may still walk away out of pocket.
✔️ Conduct Matters More Than Outcome
Costs are more likely to be awarded where there is:
Unreasonable behaviour
Procedural misconduct
Vexatious or weak claims
✔️ Evidence Is Critical
If you’re claiming costs, you must clearly prove:
The expense
The connection to the dispute
Why it is fair for the other party to pay
Final Thought
This case highlights an important reality of strata disputes:
The goal isn’t to “win and get paid back” — it’s to resolve disputes fairly and efficiently.
And unless something has gone seriously wrong in the conduct of the matter…
👉 You should assume you’ll be bearing your own costs.
Want to dive into this further?
Read the case here ↓
Visual slide deck here ↓
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