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Settle Legal Problems Early

Saturday, December 24th 2011

The liability of a body corporate is unlimited. A Gold Coast newspaper article some years ago alerted those of us on committees to be very concerned about the possibility of escalating legal costs.

The report was of a case where a high rise body corporate (apparently through a decision of a committee chairman) had been ordered to pay costs of $200,000 to settle the dispute. Raising an extra $200,000 in levies is a frightening extra impost for owners and would be most difficult for the committee to explain.

A lawyer in that report stated that because the liability for bodies corporate is unlimited “bodies corporate should think hard before entering litigation”


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