Strata Disputes NSW: Thinking Commercially Before You Litigate

There’s a reason strata disputes can get so heated so quickly. As any seasoned strata lawyer will tell you, a unit isn’t just an investment — it’s someone’s home. And when something threatens the peace, safety or fairness of that home, emotions can overtake clear-headed decision-making in a heartbeat.

But here’s the reality that owners corporations and strata committees can’t afford to ignore: under the Strata Schemes Management Act 2015 (NSW), every member of a strata committee has a legal duty to exercise their functions with honesty, fairness, and due care and diligence. That duty doesn’t pause when things get personal — and it absolutely applies to decisions about whether to commence, continue, or defend legal proceedings.

The financial stakes are real. While winning a strata dispute at NCAT does not automatically entitle a party to recover their legal costs, pursuing a meritless claim or appeal can expose an owners corporation to a significant financial penalty — one ultimately borne by all lot owners through a special levy.

So when is it worth pressing ahead? And when is setting aside pride and ego actually the commercially sensible — and legally responsible — thing to do?

In this episode of the Strata Law Podcast, Sachs Gerace Lawyers’ Special Counsel Clement Lo draws on decades of strata litigation experience to answer exactly these questions — with practical, no-nonsense guidance on costs, risk, and knowing when to fight and when to settle.