Academy Construction & Development - Case Update

The Supreme Court of New South Wales has ordered that Academy Construction & Development and one of its directors (the “ACD Parties”) pay the costs of a successful application by the Owners Corporation to terminate the DOCA entered into by the company on the basis that it was unfairly prejudicial.

The administrators, having taken a largely neutral position on the application, were not ordered to pay costs.

The ACD Parties sought a stay of the order for 28 days to allow them to appeal.

The administrators initially did not take a position on this, but the Court requested submissions on the stay application after an issue was raised as to how the administrators would have to continue in office during the stay and whether the Court should permit the deed fund to be eroded by their remuneration and disbursements in that period, or whether the ACD Parties should have to indemnify them for those costs.

Read the decision here.