New South Wales Consolidated Acts

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Costs of operator's legal advice or proceedings

198 Costs of operator's legal advice or proceedings

(1) The residents of a retirement village are not liable to pay any costs incurred by the operator (or that the operator expects to incur) in obtaining legal advice, or undertaking legal proceedings, in relation to the village unless--
(a) the costs appear in the approved annual budget, or
(b) in the case of legal advice obtained--section 31 applies.
(2) If the residents refuse to consent to the inclusion of such costs as an item in a proposed annual budget, the Tribunal, on an application by the operator under section 115, may order expenditure on those costs only if the Tribunal determines that--
(a) the legal advice was (or is to be) obtained, or the proceedings undertaken, wholly in the interest of the residents, and
(b) the costs are reasonable in the circumstances.
(3) This section has effect despite the provisions of any village contract.
(4) However, this section does not apply in respect of any costs awarded in favour of the operator and against a resident (or the residents) of a retirement village in legal proceedings.

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