Brisbane Marine Pilots Pty Ltd (in liquidation) v General Manager of Maritime Safety Queensland, Department of Transport and Main Roads and Ors (costs) [2022] QCAT 225
QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL
CITATION: Brisbane Marine Pilots Pty Ltd (in liquidation) v General
Manager of Maritime Safety Queensland, Department of
Transport and Main Roads and Ors (costs) [2022] QCAT
225
PARTIES: BRISBANE MARINE PILOTS PTY LTD (IN
LIQUIDATION)
(applicant)
v
GENERAL MANAGER OF MARITIME SAFETY
QUEENSLAND, DEPARTMENT OF TRANSPORT
AND MAIN ROADS
POSEIDON SEA PILOTS PTY LTD
MATT STANNARD
COLIN KESTEVEN
(respondents)
APPLICATION NO/S: GAR662-21
MATTER TYPE: General administrative review matters
DELIVERED ON: 20 June 2022
HEARING DATE: On the papers
HEARD AT: Brisbane
DECISION OF: Member Gordon
ORDERS: The applications brought by Poseidon Sea Pilots
Pty Ltd, Matt Stannard, and Colin Kesteven and
by the General Manager of Maritime Safety
Queensland, Department of Transport and Main
Roads seeking a costs order against Brisbane
Marine Pilots Pty Ltd (in liquidation) are
dismissed.
Each party must bear their own costs for the
proceeding.
CATCHWORDS: ADMINISTRATIVE LAW – ADMINISTRATIVE
TRIBUNALS – QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL – costs – whether the
correct approach to costs in the tribunal under sections 100
and 102 of the QCAT Act is that these sections merge so
that the true overall test is whether the interests of justice
require an order for costs – whether the recent authorities of
Marzini, Cowen and CH should be followed when deciding
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costs instead of the traditional authorities of Ralacom,
Magill and McGee
ADMINISTRATIVE LAW – ADMINISTRATIVE
TRIBUNALS – QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL – costs – where a
successful party was legal represented and this was
reasonably necessary but may erode the fruits of success –
the impact that this should have on the costs outcome under
sections 100 and 102 of the QCAT Act
ADMINISTRATIVE LAW – ADMINISTRATIVE
TRIBUNALS – QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL – costs – where an
applicant for a review of a decision by a government agency
was unsuccessful in the tribunal – where both the
government agency and joined interested parties now apply
for the applicant to pay their costs of the proceedings –
whether a costs order should be made
Acts Interpretation Act 1954 (Qld), s 14, s 35C
Human Rights Act 2019 (Qld), s 31, 13(1)
Queensland Civil and Administrative Tribunal Act 2009
(Qld), s 3, s 4, s 100, s 102
Abbott v Queensland Building and Construction
Commission [2022] QCAT 129
Airey v Ireland ECHR (9 October 1979)
Bakir v Body Corporate for Chevron Renaissance & Ors
(No 4) [2019] QCATA 28
Bell v State of Queensland & Anor [2015] QCAT 369
Bellet v France ECHR (4 December 1995)
Brisbane Marine Pilots Pty Ltd v General Manager of
Maritime Safety Queensland, Department of Transport and
Main Roads and Ors [2021] QCAT 436
Campbell v Queensland Building and Construction
Commission [2021] QCATA 34
Campbell v The Body Corporate for 70 Bowen St CTS
15330 & Ors (costs) [2020] QCATA 26
CH v Queensland Police Service [2021] QCATA 137
Cowen v Queensland Building and Construction
Commission [2021] QCATA 103
Croatian Community Centre (Qld) Ltd v Boss Lawyers Pty
Ltd [2022] QCAT 94
Fast Access Finance (Beaudesert) Pty Ltd and Anor v
Charter and Anor (No 2) [2012] QCATA 172
Fuge v Queensland Building and Construction
Commission [2014] QCAT 383
Golder v United Kingdom ECHR (21 February 1975)
Holgar v Chief Executive, Department of Justice and
Attorney-General & Ors [2022] QCATA 27
Klein v Domus Pty Ltd (1963) 109 CLR 467
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3
Magill v Queensland Law Society Inc (No 3) [2020] QCAT
327
Marzini v Health Ombudsman (No 4) [2020] QCAT 365
Maylor (No. 2) -v- Mid North Coast Area Health Service
[2001] NSWADT 118
McEwan v Barker Builders Pty Ltd [2010] QCATA 49
McGee v Queensland Building and Construction
Commission & Anor [2018] QCATA 124
Melville & Anor. v Body Corporate for Santorini by the
Sea CTS 16829 [2022] QCAT 119
Murray v Body Corporate for the Mediterranean Towers
CTS 35038 [2022] QCATA 31
Murtough v NSW Bar Association [2008] NSWADT 166
Queensland Racing Integrity Commission v Vale [2017]
QCATA 110
Ralacom Pty Ltd v Body Corporate for Paradise Island
Apartments (No 2) [2010] QCAT 412
R (on the application of UNISON) v Lord Chancellor
[2017] UKSC 51
Samimi v Queensland Building Services Authority [2012]
QCAT 133
Stuart v Queensland Building and Construction
Commission [2016] QCATA 135
Tamawood Ltd & Anor v Paans [2005] QCA 111
Turner v Macrossan & Amiet Pty Ltd (No 2) [2016] QCAT
255
Warren v Queensland Law Society Incorporated (No 2)
[2013] QCAT 234
APPEARANCES &
REPRESENTATION:
Applicant: Matthew Hickey OAM counsel, instructed by Clyde & Co.
Respondents: Scott McLeod QC and Florence Chen counsel, instructed by
Crown Law for the General Manager of Maritime Safety
Queensland, Department of Transport and Main Roads
For costs: Florence Chen
John McKenna QC and Samuel Walpole counsel, instructed
by MinterEllison for Poseidon Sea Pilots Pty Ltd, Matt
Stannard and Colin Kesteven
For costs: Samuel Walpole
REASONS FOR DECISION
[1] These are applications for costs brought by Poseidon Sea Pilots Pty Ltd (PSP) and by
Matt Stannard and Colin Kesteven and by the General Manager of Maritime Safety
Queensland, Department of Transport and Main Roads (MSQ). They all seek a costs
order against Brisbane Marine Pilots Pty Ltd (BMP). BMP failed in review
proceedings in the tribunal.
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[2] There are currently two irreconcilable lines of authority demonstrating different
approaches to the starting point for costs and these applications require me to decide
between them. I also need to analyse the impact on costs of the successful party being
legally represented and this being reasonably necessary, but which may erode the
fruits of success.
[3] In the review proceedings, BMP claimed to be ‘a person whose interests are affected
by an original decision’, that is a decision by MSQ to grant licences to Matt Stannard
and Colin Kesteven to operate as pilots in the Brisbane Pilotage Area for the port of
Brisbane. BMP asked the tribunal to stay MSQ’s decision about the licences. Upon
a valid request of MSQ to review such a decision by way of internal review, the
tribunal would have power to stay the decision. BMP asked the tribunal for such a
stay.
[4] The context of all this was that since 1989, BMP had been the sole pilotage provider
for the Brisbane Pilotage Area under a series of contracts made with MSQ. From 1
January 2022 the applicant was to cease to be the pilotage provider. Instead, the
second respondent, PSP, had been appointed as pilotage provider for the ten years
starting 1 January 2022. A pilotage provider must provide pilots to navigate ships of
over 50 metres.
[5] The application for review was originally brought against MSQ and against PSP as
interested parties, and the two named pilots were joined to the proceedings by consent
a little later. At the hearing of this matter BMP’s counsel explained that BMP would
seek to challenge the granting of pilot licences to all PSP’s pilots and would do so on
the same grounds if necessary if a stay were to be granted in respect of the currently
joined pilots.
[6] All parties obtained the leave of the tribunal to be legally represented. The two pilots
were represented by the same solicitors and counsel as PSP. In this decision, when I
refer to PSP’s costs application, in the correct context this should also be read as
referring to the costs application made by the two pilots.
[7] In the application for a stay, BMP challenged the training given to the PSP candidates
for pilot licences and how they were assessed by MSQ when the decision was made
to grant the licences.
[8] The issues which arose from this matter were largely technical, starting with an
understanding of the statutory provisions under which the application was properly
made, then the question whether BMP had sufficient standing on any basis to bring
the application for a stay of the decision, and finally whether such a stay should be
granted pending an internal review of the decision by MSQ.
[9] BMP was wholly unsuccessful in the application. In the decision delivered on 20
December 2021 after hearing the parties and reading the filed material,1 I decided that
BMP had not been entitled to request MSQ internally to review the decision to grant
the licences. This meant that BMP could not apply to the tribunal for a stay of the
decision as it had done in these proceedings. I decided that BMP did not have
sufficient standing on any basis to bring the application for a stay of the decision. In
1 Reported at Brisbane Marine Pilots Pty Ltd v General Manager of Maritime Safety Queensland,
Department of Transport and Main Roads and Ors [2021] QCAT 436.
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any case I found that a stay should not be granted pending an internal review of the
decision by MSQ even if it did have sufficient standing.
[10] PSP’s claim for costs is for $110,000 – being an amount which, it is said in an affidavit
in support, would be likely to result from an assessment of the costs – bearing in mind
that the solicitor client costs are $169,030.49, including disbursements.
[11] MSQ’s claim for costs is for $51,300, which again is an amount calculated assuming
that that they would be assessed.
QCAT’s statutory provisions to award costs
[12] In this matter, the power to award costs is in Division 6 of the Queensland Civil and
Administrative Tribunal Act 2009 (Qld) (QCAT Act). The relevant part of these
provisions are:
Division 6 Costs
100 Each party usually bears own costs
Other than as provided under this Act or an enabling Act, each party to a
proceeding must bear the party’s own costs for the proceeding.
102 Costs against party in interests of justice
(1) The tribunal may make an order requiring a party to a proceeding to
pay all or a stated part of the costs of another party to the proceeding if
the tribunal considers the interests of justice require it to make the
order.
(2) However, the only costs the tribunal may award under subsection (1)
against a party to a proceeding for a minor civil dispute are the costs
stated in the rules as costs that may be awarded for minor civil disputes
under this section.
(3) In deciding whether to award costs under subsection (1) or (2) the
tribunal may have regard to the following—
(a) whether a party to a proceeding is acting in a way that
unnecessarily disadvantages another party to the proceeding,
including as mentioned in section 48(1)(a) to (g);
(b) the nature and complexity of the dispute the subject of the
proceeding; (c) the relative strengths of the claims made by each
of the parties to the proceeding;
(d) for a proceeding for the review of a reviewable decision—
(i) whether the applicant was afforded natural justice by the
decision-maker for the decision; and
(ii) whether the applicant genuinely attempted to enable and help
the decision-maker to make the decision on the merits;
(e) the financial circumstances of the parties to the proceeding;
(f) anything else the tribunal considers relevant.
[13] Costs could also be awarded in the tribunal under section 47 of the QCAT Act (costs
order following dismissal or strike out because the proceeding is frivolous, vexatious,
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misconceived, lacking in substance or an abuse of process) and also under section 105
and rule 862 (offers to settle).
[14] Here we are concerned with an application for costs under section 102. At first sight
anyway, it can be seen that section 100 seems to state a general rule, and section 102
gives the tribunal power to order costs if it considers the interests of justice require it
to make the order.
The relevant factors relied on by the costs applicants
[15] In this costs application, submissions are made by PSP and MSQ in an attempt to
show that the interests of justice require the tribunal to make an order for costs. These
submissions fall under the headings of BMP’s motive in bringing the proceedings
(which is said to be to gain a financial advantage), the fact of the heavily commercial
nature of the proceedings, the merits of BMP’s application (which are said to have
always been weak), the fact that one application made by BMP was incompetent, and
a sweep up submission (relying on PSP’s and MSQ’s need to be legally represented
and incur costs in order to succeed in the matter).
BMP’s motive
[16] MSQ submit that in making the application, BMP sought to gain financial advantage
because if it had been successful in achieving a stay, MSQ would have had to enter
into a contract with BMP for pilotage services after the existing agreement with BMP
ended, because the affected PSP pilots would not have been able to provide those
pilotage services.
[17] PSP’s submissions are much stronger. They describe BMP as being a disappointed
commercial party, making the application for review in order to attempt to frustrate
the pilotage contract awarded by MSQ to PSP and to disrupt nearly two years of work
by MSQ and PSP on the handover, with the potential to cause considerable financial
losses to PSP because of its financial outlay and loss of future revenue from the
contract.
[18] PSP say that therefore the application was not of the usual type which is determined
by the tribunal in its review jurisdiction and the tribunal should not be concerned about
deterring other applicants from invoking the tribunal’s review jurisdiction by making
a costs order.
[19] It is true that had BMP been successful in the application, it is likely that MSQ would
have had to maintain the status quo by extending BMP’s contract (it had already been
extended by one year because of Covid-19) or entering into a new contract to the same
effect. The tribunal’s final consideration of the review could have taken some time.
Meanwhile PSP would suffer heavy financial losses. The application therefore had a
heavily commercial nature.
[20] There are things in my original decision which support these submissions about
BMP’s motive:
(a) To help to achieve a proper handover of the pilotage contract from BMP to PSP,
MSQ asked BMP to permit PSP’s pilots during December 2021 to observe
BMP’s pilotage operations on the bridge. The idea was that this would give
2 Queensland Civil and Administrative Tribunal Rules 2009 (Qld).
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PSP’s pilots ‘on water’ experience in the Brisbane Pilotage Area in real life
situations. Since the existing pilots were all employed by BMP, it had direct
control over whether or not this handover would occur. However, BMP refused
to co-operate with this proposal.3 At the hearing before me, through counsel,
BMP offered an explanation for this saying that there was no contractual or
statutory obligation to co-operate in this way.
(b) PSP agreed with MSQ that in the month of December 2021, PSP’s pilots would
provide pilotage services in the Brisbane pilotage area. I called this the ‘parallel
pilotage plan’. This would have meant that BMP’s pilots would be working in
the same area of water as PSP’s pilots. To manage this, MSQ set up an
Operational Readiness Group involving all interested parties. BMP was asked
for its cooperation and a meeting was arranged to discuss the plan but the
applicant declined to attend.4 A letter written the day before the hearing and
dated 14 December 2021 which was in evidence,5 shows that BMP had been
alleging that the parallel pilotage plan would be a breach of its pilotage service
contract. The MSQ letter said that this was not accepted but ‘in order to avoid
a potential dispute during the transition of services ... we wish to inform you
that MSQ will no longer be pursuing this proposal’.
(c) One of the BMP’s adverse interests relied on in order to show sufficient standing
to bring the stay application was a contract made by BMP under which they
would send their tugs through the Brisbane Pilotage Area after the changeover
date on a barge of such a size that a pilot would be required.6 BMP said that
there were safety concerns if a PSP pilot were to be used for this voyage and so
their interests would be affected. A solution was offered by MSQ, to consider
providing BMP with an exemption for the voyage so that BMP could use one
of its own pilots instead. This would require written agreement from BMP but
it was submitted at the hearing on behalf of BMP that there was nothing to show
that this would be forthcoming. Hence it was said, the adverse interest was
maintained despite the offer.7
[21] Inevitably these things leave the tribunal with the impression that BMP was intent
upon not only being uncooperative with the handover to PSP, but also trying to disrupt
it by bringing the application for a stay as PSP submits. The question is whether, in
the absence of cross examination of BMP’s witnesses, it is right to rely on this
impression when considering costs.
[22] In my original decision I made findings about the evidence showing that there was
nothing to suggest that BMP’s witnesses were not genuine in their concerns about the
safety of the new recruitment, training and assessment arrangements.
[23] I agreed with the submissions made by Mr McKenna on behalf of PSP, that the views
expressed by BMP’s witnesses about the inadequate training and experience for the
PSP pilots was not given with the benefit of actual knowledge of the pilots involved
or the training that they have received.8
3 Original decision, [58].
4 Original decision, [77].
5 Huggett, exhibit JAH-4.
6 Original decision, [51].
7 Original decision, [57].
8 Original decision, [151].
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[24] I also found that the views of the witnesses were expressed without knowledge of the
process of recruitment, assessment and training undertaken by PSP before
engagement of the prospective pilots and without knowledge of the assessments
against criteria carried out by MSQ for the granting of the pilot licences as was now
set out in the affidavits. In particular, the evidence was clearly not given in the
knowledge that all PSP’s candidates for pilot licences are highly experienced ship
masters and most of them are qualified pilots, albeit mostly with experience in other
ports.9
[25] Equally it cannot be said that the BMP witnesses did not truly believe that the training
given to the new pilots was insufficient and unsafe as they stated in their affidavits.
There was no cross examination, and in those circumstances I must assume that the
evidence was thought to be correct at the time the affidavits were made.
[26] Also it is not possible to say, without cross examination, whether BMP intentionally
failed to co-operate with the handover in order to obtain ammunition in the review
proceedings by being able to suggest that the new pilots had insufficient bridge
training. This could be limited to irony or it could be manipulation of the highest
order designed to disrupt the handover. All that can be said is that BMP had no legal
obligation to co-operate with the handover. Any duty to do so would be a moral one
only, or one aimed at achieving maximum safety upon the contract takeover in the
public interest. As it turned out, it was clearly a serious defect in the contractual
arrangements between MSQ and BMP not to provide for co-operation with a handover
upon the ending of the contract.
[27] In the circumstances, in the absence of cross examination of BMP’s witnesses, it
would be wrong for me to assume that BMP had manufactured a case or had an
improper motive for the proceedings.
Heavily commercial nature of the proceedings
[28] It has been emphasised in the submissions for costs that the proceedings were of a
commercial nature.
[29] But many reviews heard by the tribunal have a commercial nature in the sense that
they involve a party in trade and commerce. An example was Holgar v Chief
Executive, Department of Justice and Attorney-General & Ors [2022] QCATA 27
considered below. It was not suggested in that case that the fact that the party seeking
the costs order was in trade and commerce made any difference to the outcome of the
costs application, apart from being a factor under section 102(3)(e) (financial
circumstances of the parties).
[30] Although the commercial nature of the proceedings and the amount at stake may be
taken into account when considering whether the interests of justice require an order
for costs to be made it does not appear strongly to lean the tribunal in that direction.
The merits of BMP’s application
[31] It seems to me for the purposes of costs in review matters it is necessary to understand
the merits as they reasonably appeared to the applicant when the application was made
and at any stage during the currency of the application where there is a significant
shift in the merits. Such a shift quite often happens as the evidence is filed, or as new
9 Original decision, [153].
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considerations arise. There have been many costs decisions based on whether a party
should have withdrawn a review application (or in a respondent’s case, should have
offered a reconsideration if available) on such a shift happening.
[32] Both PSP and MSQ point out that BMP failed in all aspects of the application, that is
standing, prospects of success on review and the balance of convenience in the stay
application. PSP say that BMP had a weak case from the outset.
[33] It is important I think, that when BMP first brought the stay application it could show
far more easily than at the time of the hearing that it was ‘a person whose interests are
affected by an original decision’. This was because the parallel pilotage plan was at
that time still proceeding. A day before the hearing, the parallel pilotage plan was
abandoned.10 By that time however, quite substantial costs had already been incurred.
I think it would have been difficult for BMP to unwind matters in the time available,
so as to avoid the costs of the hearing.
[34] In any case, the apparent merits of the application were still not as bad as turned out
to be the case later. It was still arguable that standing should be assessed at the time
of the application, rather than at the date of the hearing, and if this were correct then
the merits were not so weak as to demand a withdrawal.
[35] Also, on my findings about BMP’s evidence in the section above under ‘BMP’s
motive’, the merits of the application would have appeared a lot better than they would
have appeared after the evidence filed by PSP and MSQ. Even then it seems to me
that the case was still arguable.
[36] One of the main reasons why the application failed in the first instance was because it
was outside the scope of the tribunal’s administrative review jurisdiction. This was
because the decision to grant the pilot licences was a natural and inevitable
consequence of earlier non-reviewable decisions.11 It was for that reason that I
decided that BMP did not have sufficient standing on any basis to bring the application
for a stay of the decision. It cannot be said that it was obvious or even foreseeable
that the tribunal would come to this view. I say that because it was not a submission
made either by MSQ or by PSP. Hence it cannot be said that the weakness of the
application on those grounds could or should have been recognised by BMP when it
made the application.
[37] I conclude that although the merits may be taken into account when considering
whether the interests of justice require an order for costs to be made, it does not appear
strongly to lean the tribunal in that direction.
One application was incompetent
[38] The application which is said to be incompetent was an application to stay a decision
of MSQ filed by BMP on 9 December 2021. Six days earlier on 3 December 2021
BMP had filed an application to stay a decision of MSQ, and in the actual sequence
of events it was that application which was in the tribunal’s jurisdiction and not the
later one.12 There was in fact a further application filed by BMP over which the
tribunal had no jurisdiction.13
10 Original decision, [45].
11 Original decision, [116].
12 Original decision, [17].
13 Filed on 10 December 2021 – original decision, [24].
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[39] Although there is no explanation from BMP as to why these incorrect applications
were filed, it seems likely that given the urgency and importance of the matter BMP’s
legal representatives wished to ensure there was some matter before the tribunal and
so wished to cover all eventualities. If that is not the explanation, then mistakes were
made.14
[40] Either way, I cannot see that the incorrect applications should have any substantial
effect on the outcome of the costs application because there is nothing in the costs
applications showing that any legal costs were incurred by reason of the incorrect
applications. It seems to me that it is probably the case that no such costs were
incurred because exactly which of the various applications which had been made were
within the tribunal’s jurisdiction was not at the forefront of the parties’ submissions
at the original hearing.
The sweep up submission
[41] Both PSP and MSQ make the submission that:
(a) The dispute was one of considerable public and commercial significance.
(b) They had no choice but rigorously to respond to the application for review.
(c) Inevitably they had to engage lawyers including Queen’s Counsel, junior
counsel and solicitors.
(d) As it turned out, the case for a review was very weak.
(e) They won the case.
[42] Although all these things are true, the question is whether they are sufficient for the
tribunal to say that the interests of justice require an order for costs.
[43] In their submissions, both PSP and MSQ submit that they are sufficient.
[44] Using identical wording, and citing a passage in Ralacom Pty Ltd v Body Corporate
for Paradise Island Apartments (No 2) [2010] QCAT 412, [26], Justice Alan Wilson,
President, both submit ‘that it is well recognised that’:
where the complexity of the matter justified legal representation, it would not
be in the interests of justice to bar the successful party from recovering costs
that were reasonably necessary to achieve a satisfactory outcome
[45] In fact, that passage was Justice Wilson’s summary of a view expressed by Keane JA
in Tamawood Ltd & anor v Paans [2005] QCA 111, [33].
[46] Also, relying on a passage in Cowen v Queensland Building and Construction
Commission [2021] QCATA 103,15 PSP suggest that this is indeed the correct starting
point when deciding whether the interests of justice require the tribunal to make a
costs order, so that unless there are countervailing considerations BMP should be
ordered to pay its costs.16
[47] In its submissions, MSQ cite and rely on Marzini, Cowen and CH v Queensland Police
Service [2021] QCATA 137 for the proposition that the test for costs under section
14 It is not suggested that the multiple applications were made in an attempt to oppress.
15 [67], Judicial Member McGill SC.
16 Submissions in reply.
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102 is not whether factors favouring an order are ‘compelling’ as suggested in
Ralacom, but rather whether the interests of justice ‘require’ an order for costs.
However, the word ‘require’ shows that an order for costs should not be too readily
made.
[48] MSQ cite Cowen at [26] as saying that the words in the heading of section 100 ‘each
party usually bears own costs’ do not mean that usually no order for costs will be
made and that it is meaningless to talk of a usual order in a particular case especially
where parties are usually unrepresented and the legislation does not state that it should
only be made in exceptional circumstances.
[49] BMP point out that in Ralacom, when summarising the view expressed by Keane JA
in Tamawood, Justice Wilson said that the view had to be considered in the light of
different statutory provisions in QCAT which were not displaced.17 I agree with these
submissions.
[50] BMP submit that the default position is that each party must bear their own costs and
that (citing Justice Daubney, President, in Magill v Queensland Law Society Inc (No
3) [2020] QCAT 327) on an application for costs the question is whether the
circumstances relevant to the discretion inherent in the phrase ‘the interests of justice’
point so compellingly to a costs award that they overcome the strong contra-indication
against costs orders in section 100 of the Act.
[51] BMP run through the factors in section 102(3) and find nothing there requiring an
order for costs.
The two lines of authority on the question of costs
[52] In their submissions therefore, the parties to these cost applications rely on the two
currently contrasting lines of authority requiring quite different approaches when
dealing with a costs application in the tribunal under section 102. Although at first
instance I would be obliged to follow authority at least for reasons of consistency, it
is not clear which line of authority is currently paramount.
[53] In their submissions BMP rely on the traditional line of authority in approach (a) and
PSP and MSQ rely on the recently developed line of authority in approach (b). The
two approaches are:
(a) Section 100 is the usual rule (a starting point) which, when read with section
102, means that each party bears their own costs unless the interests of justice
require otherwise (as explained in McGee18). So the question that will usually
arise is whether the circumstances relevant to the discretion inherent in the
phrase ‘the interests of justice’ point so compellingly to a costs award that they
overcome the strong contra-indication against costs orders in section 100
(traditional line of authority in Ralacom and Magill).
(b) Section 100 should be read together with section 102 so that the overall rule is
that the tribunal will award costs if the interests of justice require it to make the
order (recently developed line of authority in Cowen and CH). This also means
that section 100 is not a starting point; instead there is a new starting point where
the successful party had good reason to be legally represented: in those
17 Ralacom, [27] to [29].
18 McGee v Queensland Building and Construction Commission & Anor [2018] QCATA 124.
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circumstances costs should follow the event unless there are relevant
countervailing considerations (Cowen).
[54] Without deciding this, it seems likely that which approach I choose to follow will
effectively decide the outcome of this costs application. This is because, in this
particular case, if I choose (a), the sweep up submission is only a factor to take into
account, but if I choose (b), the sweep up submission will be a starting point or at least
highly persuasive in the absence of countervailing considerations. And there probably
are no such countervailing considerations.
[55] Hence I need to choose one or the other. This is also important because the two
approaches have been shown to produce quite different results on a practical level. In
both Cowen and in CH, the member at first instance decided, applying approach (a),
that there should be no costs award, but on applying approach (b) the Appeal Tribunal
decided that there should be a costs award.
[56] In considering this, I am conscious of the fact that whether something is required in
the ‘interests of justice’ is a matter of subjective judgement and will vary between
decision makers. These variations arise from decision makers having a different
understanding of the meaning of the expression (for example, whether the expression
is limited to consideration of fairness as between the parties or whether it has a wider
meaning in the public sense). Or decision makers applying different weight to all the
various factors which might need to be considered. This makes it much harder for
parties to predict the outcome of ‘the interests of justice’ test than for example where
the test is of reasonableness, or a breach of tribunal’s directions which might apply in
other jurisdictions.
Considerations of the two lines of authority
[57] Approach (a) was firmly established in Ralacom Pty Ltd v Body Corporate for
Paradise Island Apartments (No 2) [2010] QCAT 412. There, Justice Alan Wilson,
President, having cited the dicta from Keane JA in Tamawood, but because of the
differences in the statutory provisions applying, decided that the dicta would need to
‘be considered in the light of those differences’. Then he said that:
the question that will usually arise is whether the circumstances relevant to the
discretion inherent in the phrase “the interests of justice” point so compellingly
to a costs award that they overcome the strong contra-indication against costs
orders in s100.
[58] But in Marzini v Health Ombudsman (No 4) [2020] QCAT 365, Judicial Member
McGill SC found this wording curious because there was nothing in section 100 to
show a ‘strong contra-indication’ against costs orders and that requiring the ‘interests
of justice’ to support a costs order ‘compellingly’ was reading into the statutory
discretion restrictions which are not based on the terms of the Act.19
[59] Instead, he considered that sections 100 and 102 should be read together so that the
ultimate question was whether it is in the interests of justice to make a costs order.20
19 [17].
20 [25].
-- 12 of 32 --
13
[60] Judicial Member McGill SC revisited this in Cowen v Queensland Building and
Construction Commission [2021] QCATA 103 and maintained his view that the
relevant test was whether the interests of justice require an order for costs.21
[61] In CH v Queensland Police Service [2021] QCATA 137, [6] and [7], Judge Allen QC
Deputy President agreed with Judicial Member McGill SC’s conclusion in Marzini
and in Cowen. The appeal against the refusal of the costs order was allowed because
the member relied on the ‘so compellingly’ test in Ralacom which ‘unduly constrained
the discretion to be exercised’ in section 102 and therefore acted on a wrong principle
and erred in law in so doing.
[62] The deputy president said:22
I agree with the conclusions reached by Judicial Member McGill SC in that
decision as to the correct approach to the operation of sections 100 and 102 of
the QCAT Act:
The ultimate question posed by the statutory provisions is whether in a
particular case the interests of justice require the Tribunal to make a costs
order. That is the effect of the terms of the statute. Because of the use in
s 102(1) of the word ‘require’, the default position of no order as to costs
should not be too readily departed from.
…
I do not consider that there is any justification in the words of the statute
for any further constraint on the operation of the power to order costs
under s 102, although the section directs attention to a number of matters
which may in a particular case be usefully considered. The reference to
“any other matter the Tribunal considers relevant” shows that this list is
not to be read in a confining sense.
I also agree with the observations of Judicial Member McGill SC in Cowen v
Queensland Building and Construction Commission, including the following:
In so far as his Honour went further in Ralacom at [29], I consider that
his statement cannot confine the discretion conferred on the Tribunal
under s 102(1), or modify the test in that section.
…
I consider that to say that an order for costs will not be made unless the
factors favouring an order are ‘compelling’ does not accurately state the
test for making an order for costs laid down by s 102(1) … The test is
whether the interests of justice ‘require’ an order for costs, but I do not
accept that the circumstances favouring an order for costs must be
compelling before that test will be met.
[63] For my part, I find it difficult to reconcile the disappearance of what I regard as the
section 100 starting point and the merger of sections 100 and 102, with what was said
in Tamawood itself. In that case the Court of Appeal considered whether the District
Court which had heard the earlier appeal (DJ McGill SC) had been right to say that
the costs provisions in the Commercial and Consumer Tribunal Act 2003 (Qld)
21 [26].
22 [6].
-- 13 of 32 --
14
(CCTA) merged into one test: so that ultimately the test for costs in the CCTA was
whether the interests of justice require a costs order to be made.
[64] The Court of Appeal said the costs provisions did not merge into one test and that the
District Court was incorrect to apply the test in that way. As Keane JA said:23
The language of the provisions of the Act to which I have referred is sufficiently
clear to negate the proposition that success in the proceedings is sufficient to
establish a prima facie entitlement to the beneficial exercise of the discretion
conferred by s 71(1) of the Act. The approach of the learned District Court
judge seems to me, with respect, to deny the words of both s 70 and s 71(5) their
ordinary meaning; it is not to the point that another form of words might have
been used to make that position even clearer.
The Explanatory Memorandum to the Bill for the Act said that one of the key
principles underpinning the operation of the Tribunal was to be an ‘emphasis
on self-representation - provisions are made in the Bill for parties to represent
themselves, thus ensuring that the [Tribunal] maintains informality’. It went on
to provide that:
Clause 70 establishes beyond doubt that the purpose of this Division is
that parties pay their own costs unless the interest [sic] of justice require
otherwise. This provision is in keeping with the objective of the Bill to
establish an informal and cost effective tribunal.
The approach taken by the learned District Court judge cannot be said to ‘best
achieve the purpose’ of the Act made evident by s 70.
..
To view s 70 in the same light as the learned District Court judge is effectively
to leave the new provision with no real work to do.
[65] And Williams JA, having recited a submission that section 70 should be treated as
analogous to a preamble, explained that it contained the starting point:24
Section 70, although it expresses the purposes of the division, cannot be equated
with a preamble. It is part of the statute and has the same force and effect as s
71. It is made clear by s 70 that the starting point is that each party should ‘pay
their own costs unless the interests of justice require otherwise’. Then s 71 deals
with the considerations relevant to deciding whether some order for costs should
be made and the situation where the Tribunal has determined that the interests
of justice require that some order for costs be made. The sections can, and
should, be read together as indicated by Keane JA in his reasons.
[66] To explain the finding here it seems helpful to set out the relevant statutory provisions
in the CCTA:
70 Purposes of div 7
The main purpose of this division is to have parties pay their own costs unless
the interests of justice require otherwise.
23 [24], [25].
24 [2].
-- 14 of 32 --
15
71 Costs
(1) In a proceeding, the tribunal may award the costs it considers appropriate
on—
(a) the application of a party to the proceeding; or
(b) its own initiative.
(2) The costs the tribunal may award may be awarded at any stage of the
proceeding or after the proceeding has ended.
(3) If the tribunal awards costs during a proceeding, the tribunal may order that
the costs not be assessed until the proceeding ends.
(4) In deciding whether to award costs, and the amount of the costs, the
tribunal may have regard to the following—
(a) the outcome of the proceeding;
(b) the conduct of the parties to the proceeding before and during the
proceeding;
(c) the nature and complexity of the proceeding;
(d) the relative strengths of the claims made by each of the parties to the
proceeding;
(e) any contravention of an Act by a party to the proceeding;
(f) for a proceeding to which a State agency is a party, whether the other
party to the proceeding was afforded natural justice by the State
agency;
(g) anything else the tribunal considers relevant.
Examples of paragraph (g)—
The tribunal may consider whether a party to a proceeding is acting in a way
that unreasonably disadvantages another party to the proceeding.
The tribunal may consider whether the proceeding, or a part of the proceeding,
has been frivolous or vexatious.
(5) A party to a proceeding is not entitled to costs merely because—
(a) the party was the beneficiary of an order of the tribunal; or
(b) the party was legally represented at the proceeding.
(6) The power of the tribunal to award costs under this section is in addition
to the tribunal’s power to award costs under another provision of this or
another Act.
[67] When Justice Wilson in Ralacom compared the wording of sections 70 and 71 of the
CCTA with the costs provisions in the QCAT Act, he concluded that the QCAT
provisions ‘more plainly indicate that the legislature had turned its face against awards
of costs in this tribunal’.25
25 Ralacom, [24].
-- 15 of 32 --
16
[68] In the light of this, since the Court of Appeal in Tamawood considered that it was
wrong to regard the starting point in section 70 of the CCTA as disappearing and
therefore wrong to consider the test being simply whether it was in the interests of
justice to award costs, which was an issue directly before the court for consideration
and determination, then the view of the Court of Appeal must apply even more
strongly to the QCAT Act provisions where the starting point is separate, having its
own heading in section 100.26
[69] This closer study of Tamawood itself therefore seems strongly to suggest that
approach (a) is correct.
[70] There is also a substantial body of tribunal case law favouring approach (a).
[71] In Magill v Queensland Law Society Inc (No 3) [2020] QCAT 327, [3] and [5] Justice
Daubney, President described section 100 as being the ‘starting point’ and the ‘prima
facie’ position and citing McEwan v Barker Builders Pty Ltd [2010] QCATA 49, [17],
that section 100 is a plain indication that, as a matter of policy, the legislature turned
its face against awards of costs in the tribunal. As Justice Daubney said:27
The applicant had a lawful entitlement to have access to this Tribunal’s review
jurisdiction, which exists in a prima facie ‘no costs’ environment. The matter
was conducted expeditiously and efficiently. It has not been demonstrated that
the interests of justice in this case overcome the mandated primary ‘no costs’
policy.
[72] There are two Appeal Tribunal decisions when Justice Wilson’s ‘compelling’ and
‘strong contra-indication’ description of sections 100 and 102 in Ralacom was
challenged in submissions by legal representatives and therefore fully considered, and
the challenge rejected by the Appeal Tribunal. Unfortunately neither of these Appeal
Tribunal decisions were cited in Marzini or CH.28
[73] The first decision was Stuart v Queensland Building and Construction Commission
[2016] QCATA 135. It was submitted by a legally represented party that the approach
in Tamawood should be preferred over the approach in Ralacom, and that it was
incorrect to apply a gloss on the words of the Act such as to require the applicant to
make out a compelling case for costs as opposed to what the justice of the case
demands.29 However, Senior Member O’Callaghan and Member Deane pointed out
that Tamawood applied quite different statutory wording and was a building dispute.
The Appeal Tribunal confirmed that the weight of the factors must be compelling for
the starting position of each side bearing their own costs to be overcome.30
[74] The second decision was McGee v Queensland Building and Construction
Commission & Anor [2018] QCATA 124 Senior Member Brown and Member Traves
said:31
.. it was argued that s 102 should be read on its own, and was not to be coloured
by s 100. We reject this argument. In our view ss 100 and 102 must be read
26 Which heading is part of the Act and part of section 100: sections 14 and 35C of the Acts Interpretation
Act 1954 (Qld).
27 [17].
28 Both decisions were cited in Cowen but not followed.
29 [16].
30 [18].
31 [29], [30].
-- 16 of 32 --
17
together. When read together, the simple construction is that, other than as
provided under the QCAT Act or an enabling Act, each party bears their own
costs unless the interests of justice require otherwise. If there was no starting
point that each party bear their own costs, there would be no work for s 100 to
do. This, in our view, is not what the legislature intended.
[75] Other Appeal Tribunal authority has confirmed the approach in Ralacom. Examples
are Fast Access Finance (Beaudesert) Pty Ltd and Anor v Charter and Anor (No 2)
[2012] QCATA 172, [13], Dr J R Forbes, whose dicta was approved by Justice
Carmody in Queensland Racing Integrity Commission v Vale [2017] QCATA 110 at
[43], and more recently Campbell v Queensland Building and Construction
Commission [2021] QCATA 34, [36], where Senior Member Brown and Member
Traves said that the member at first instance had not been wrong to cite Ralacom and
refer to ‘strong contra-indication’.
[76] For my part I do not regard Justice Wilson in Ralacom as having amended or
supplemented the tests to apply under section 100 and 102. Instead, he was simply
describing what those sections say. As can be seen below, the discretion conferred by
sections 100 and 102 must be applied having regard to the aims and objects of the
QCAT Act, and bearing in mind the starting point in section 100, this means that there
is indeed a strong contra-indication against costs orders in the tribunal. With such a
strong contra-indication against costs orders, only when the interests of justice are
compelling can it be overcome. This is simply describing the effect of the statutory
provisions on costs in the tribunal.
Decisions since Cowen and CH
[77] In Holgar v Chief Executive, Department of Justice and Attorney-General & Ors
[2022] QCATA 27, Senior Member Howard and Member Fitzpatrick found a point in
that case which distinguished Cowen,32 so did not attempt to resolve the conflicting
authorities.
[78] In Murray v Body Corporate for the Mediterranean Towers CTS 35038 [2022]
QCATA 31, Member Lember, the ‘so compellingly’ and ‘strong contra-indication’
test in Ralacom was cited33 but neither Cowen nor CH were cited.
[79] In Croatian Community Centre (Qld) Ltd v Boss Lawyers Pty Ltd [2022] QCAT 94,34
Hon. Duncan McMeekin QC, Judicial Member, the ‘so compellingly’ and ‘strong
contra-indication’ test in Ralacom was cited with approval35 but neither Cowen nor
CH were cited.
[80] In Melville & Anor. v Body Corporate for Santorini by the Sea CTS 16829 [2022]
QCAT 119 when refusing costs to a partially successful applicant in a body corporate
dispute, Member Carrigan cited Ralacom, Cowen and CH, but applied the test that
‘the costs are governed by the general rule in s 100 of the QCAT Act that each party
must bear their own costs of the proceedings except where the Tribunal’s discretion
is enlivened in the interests of the injustice’.
[81] In Abbott v Queensland Building and Construction Commission [2022] QCAT 129 in
refusing costs to a successful applicant for review where the QBCC reconsidered its
32 [20(c)].
33 [21].
34 In the published decision the citation is wrongly given as [2021] QCAT 94.
35 [9].
-- 17 of 32 --
18
decision at early stage in proceedings, Member Cranwell cited Ralacom and Cowen
and concluded:36
I have considered the parties submissions on costs in full. In my view, the
circumstances of this case fall well short of the interests of justice requiring a
costs order to be made, much less overcoming any strong contra-indication
against awarding costs contained in s 100 of the QCAT Act.
Conclusion as to the weight of the differing authorities
[82] In summary, although normally more recent authority would have greater weight than
older authority, the birth of the more recent authority in support of approach (b), that
is Marzini, Cowen and CH, happened without the benefit of legal argument on the
particular issue involved, that is the correctness of Justice Wilson’s description of the
effect of sections 100 and 102 as a ‘strong contra indication’ requiring a ‘compelling’
interests of justice argument to displace it. They were also decided without citing
Appeal Tribunal decisions confirming the correctness of the description where there
had been such argument. The sheer longevity of the traditional approach in Ralacom
seems to gives it greater weight, and there is nothing in the more recent decisions to
guide me one way or another.
[83] On that basis alone I would tend to go with the traditional approach, but having
analysed the Court of Appeal decision in Tamawood it can be seen that the suggestion
in approach (b) that the starting point in section 100 merges into the real test which
should be applied (a test of ‘interests of justice’) was indeed rejected by the Court of
Appeal on the statutory provisions of the CCTA, and the QCAT Act is stronger in that
regard.
[84] Obviously with the greatest respect to the decision makers in Marzini, Cowen and CH,
for these reasons I find myself unable to follow these cases. It seems to me to be
correct to follow the line of authority for approach (a) rather than approach (b).
Other considerations
[85] Since the costs applications before me are finely balanced, and it has been necessary
closely to analyse the principles which apply, I am also going to take into account
other considerations which seem important.
The ‘interests of justice’ is wider than just what is fair to the parties
[86] Since the tribunal will consider in every costs application under section 102 whether
the interests of justice require it to make the order, it is helpful to know whether the
expression ‘interests of justice’ is limited to what is fair to the parties or whether it
has a wider meaning.
[87] In the QCAT Act itself, it can be seen that the expression is used in the private sense
of what is fair to the parties but also in the public interest sense, which includes the
interests of the administration of justice by the tribunal.
[88] The expression ‘interests of justice’ is used in the QCAT Act only in the private sense
in sections 49 (reinstatement of proceeding and restriction on new application or
referral) and 103 (costs against representative).
36 [26].
-- 18 of 32 --
19
[89] But it is clearly used also in the wider public sense in section 43 (representation),
where the tribunal would be assisted in the administration of justice by State agencies
being represented [a consideration in section 43(3)(a)], where legal arguments and
marshalling of evidence would assist the tribunal because of complex questions or
fact or law [a consideration in section 43(3)(b)] and also from representation for a
child or a person with impaired capacity [a ground for leave in section 43(2)(b)(i)].
[90] Section 45 (general obligation of parties) infers that the expression interests of justice
in section 102 is used not only to benefit the parties in having their dispute resolved
quickly, but also in a wider sense enabling the tribunal to meet the objects of the QCAT
Act to deal with matters in an economical and quick way.37
[91] Section 58 (interim orders) describes the making of an interim order if the tribunal
considers it appropriate in the ‘interests of justice’ to secure the effectiveness of the
exercise of the tribunal’s jurisdiction [section 58(1)(b)], which is a clear use of the
expression in the wider public interest and administration of justice sense.
[92] Finally, in section 66 (non-publication orders) and section 90 (public hearing) the
expression is used in the QCAT Act with a meaning not confined to justice between
the parties themselves having regard to their own private interests but also a wider
meaning involving the public interest, to benefit the administration of justice.
[93] From this study it seems to me that as a matter of statutory interpretation the
expression ‘interests of justice’ in section 102 can be construed both in the private
sense of what is fair to the parties but also in the public interest sense, which includes
the interests of the administration of justice by the tribunal.
[94] It is also the case that the discretion conferred by the expression ‘the interests of
justice’ must be exercised in accordance with the object and purpose of the legislation
giving the power. As was said by Dixon CJ in Klein v Domus Pty Ltd (1963) 109
CLR 467 at 473:
This Court has in many and diverse connexions dealt with discretions which are
given by legislation to bodies, sometimes judicial, sometimes administrative,
without defining the grounds on which the discretion is to be exercised … We
have invariably said that wherever the legislature has given a discretion of that
kind you must look at the scope and purpose of the provision and at what is its
real object. If it appears that the dominating, actuating reason for the decision
is outside the scope of the purpose of the enactment, that vitiates the supposed
exercise of the discretion. But within that very general statement of the purpose
of the enactment, the real object of the legislature in such cases is to leave scope
for the judicial or other officer who is investigating the facts and considering
the general purpose of the enactment to give effect to his view of the justice of
the case.
[95] This would not be possible if the expression were limited only to a private sense of
fairness as between the parties, so this strongly indicates that it is used in the wider
public interest sense, which includes the interest of the administration of justice by
the tribunal.
37 Section 3(b) QCAT Act.
-- 19 of 32 --
20
QCAT’s aims and objects
[96] It is clear from the passage in Klein above, that the discretion to award costs must be
exercised so as to achieve the aims and objects of the Act conferring the discretion.
In particular the QCAT Act requires the tribunal to deal with matters in a way that is
accessible, fair and just, economical, informal and quick.38 To achieve its objects the
tribunal must ensure proceedings are conducted in an informal way that minimises
costs to parties, and is as quick as is consistent with achieving justice.39
[97] These objects reflect what was intended when QCAT was formed. The explanatory
note to the QCAT Bill said:
The Bill will achieve its objective of dealing with matters in a way that is
accessible, fair, just, economical, informal and quick by:
• allowing representation of parties in specified matters and in other matters,
only with the leave of the tribunal
• providing that parties bear their own costs in proceedings unless the tribunal
considers the interests of justice require it to order otherwise.
[98] This second bullet point is closely similar to the then Attorney-General Cameron
Dick’s speech in the second reading of the Bill:
To ensure QCAT remains as informal and as economical as possible, parties
will generally represent themselves. However, if the interests of justice or the
rules of natural justice require a party to be represented, QCAT will grant leave
for the representation. To ensure QCAT is a low-cost jurisdiction, parties must
generally bear their own costs unless the tribunal considers it is appropriate in
the interests of justice to award costs.
[99] The QCAT model was put succinctly in McGee, where having stated the ‘simple
construction’ of the costs provisions that, other than as provided under the QCAT Act
or an enabling Act, each party bears their own costs unless the interests of justice
require otherwise, the Appeal Tribunal stated:40
This interpretation of the costs provisions is also consistent with the objects of
the QCAT Act which include to provide a way for parties to settle disputes that
is economical, informal and quick. The practice of awarding costs has the
potential to make proceedings more adversarial and, accordingly, increase the
formality and technicality with which parties approach them. It is also
consistent with one of the key principles underpinning the operation of the
Tribunal, the emphasis on self representation. The purpose of the Costs
Division in having parties pay their own costs unless the interests of justice
require otherwise, or for example s 105 of the QCAT Act is engaged, is clearly
in keeping with the objective of establishing an informal and cost-effective
tribunal.
[100] Some of these aims and objects need greater discussion in the light of developments
since the formation of the tribunal.
38 Section 3(b) QCAT Act.
39 Section 4(c).
40 McGee v Queensland Building and Construction Commission & Anor [2018] QCATA 124, [30],
Senior Member Brown and Member Traves.
-- 20 of 32 --
21
Accessibility
[101] Accessibility to justice is an object of the QCAT Act.41 As was explained by Judicial
Member Britton sitting with two members of the Equal Opportunity Division of the
NSW Administrative Decisions Tribunal in Maylor (No. 2) -v- Mid North Coast Area
Health Service [2001] NSWADT 118:42
In their attempts to make justice more accessible, Governments throughout
Australia had created a number of administrative tribunals.
To encourage a resort to law, and to make government authorities more
accountable to the citizens of Australia and the various States and Territories,
many if not most administrative tribunals established on the model of the
Commonwealth Administrative Appeals Tribunal generally expect the parties
to bear their own costs. This is particularly so where the respondent party is
usually a government authority.
[102] There is no doubt that some prospective parties would be intimidated by the prospect
of having to pay the other side’s legal costs if their application or response to a matter
in the tribunal were unsuccessful.
[103] This is not helped by the fact that some legal costs are extremely high. An example
is a recent guardianship matter heard over four days with two additional days. The
legal costs of the party seeking costs were $409,581.45.43 In a matter concerning the
termination of a body corporate service contract, costs of one party were $427,340
and the other party were $472,500.44 In a review of a QBCC decision about insurance,
costs of one party were $478,000.45 In a review of a QBCC decision about insurance
and an associated building dispute, costs of one party were some $613,000.46 In
another matter concerning the termination of a body corporate service contract the
costs of the contractor reached a staggering $800,000.47
[104] That such costs are allowed to be incurred in the tribunal, if there is any power to stop
this, seems to be contrary to the objects of the QCAT Act which are to have the tribunal
deal with matters in a way that is economical, where the tribunal must encourage the
early and economical resolution of disputes, and ensure proceedings are conducted in
an informal way that minimises costs to parties.48
[105] Although it is likely that careful case management could reduce such costs, there is
no mechanism operated by QCAT to require the parties to keep costs down. The
closest is the ability to fix costs after the event when making a costs order.49 This
differs therefore from the court rules which apply in the UK, which require all parties
41 Sections 3(b), 4(a) and 4(e).
42 [21] and [22].
43 WJ [2021] QCAT 450 where costs were fixed at $179,434.35: Members Joachim and Allen.
44 TLL Investment Pty Ltd v The Body Corporate for the Grange CTS 30993 (No 2) [2018] QCAT 444,
[2], Member Cranwell.
45 Body Corporate for Rosegum Villas CTS 37755 v Queensland Building and Construction Commission
(No. 3) [2018] QCAT 240, [24], Member Paratz.
46 Lyons v Queensland Building and Construction Commission & Dreamstarter Pty Ltd (in liquidation)
[2016] QCAT 218, [23], Member Ann Fitzpatrick.
47 The Sands Gold Coast Pty Ltd v The Body Corporate for the Sands [2019] QCAT 336, [2], Member
Gordon. Most of these costs were incurred in QCAT but some were incurred in other proceedings
relating to the same subject matter.
48 Sections 3(b), 4(b) and 4(c).
49 If the tribunal makes an order for costs it must, if possible, fix the costs.
-- 21 of 32 --
22
(and not just their representatives) to help the court to further the court’s overriding
objective to deal with cases justly and at proportionate cost.50 And in ordinary civil
actions there are comprehensive costs management powers. All represented parties
are automatically required to provide a costs budget at the start of proceedings which
would be discussed and endorsed by the court, and which would form the basis of any
assessment of costs.51 If it appears to be necessary the court can cap the costs which
may be allowed on assessment before they are incurred.52
[106] A recent survey has shown that in Australia, only 52% of households have savings of
$10,000 or more; only 29% of households have savings of $50,000 or more; and only
15% of households have savings of $100,000 or more.53 This means that even with
much smaller legal bills than those referred to above, those who might wish to seek
redress in the tribunal, or to join as a party interested, may be deterred by the prospect
of having to pay the costs of the other party or parties if unsuccessful, as well as their
own costs if they are represented. That such deterrence occurs in review proceedings
in the UK is well understood.54
[107] The importance of ready and economical access to justice has become more obvious
with the passing of the Human Rights Act 2019 (Qld) which provides in section 31:
31 Fair hearing
(1) A person charged with a criminal offence or a party to a civil proceeding
has the right to have the charge or proceeding decided by a competent,
independent and impartial court or tribunal after a fair and public hearing.
[108] It has been understood for a long time that this right goes far further than simply being
entitled to a procedurally fair hearing. It is a right of access to the courts,55 which
must provide a person with ‘a clear, practical opportunity to challenge an act that is
an interference with his rights’,56 and this will include where court procedures are so
complex that a solicitor would be required but which the person is unable to afford.57
[109] Since the right to access to justice is not absolute, the question under the Human Rights
Act in Queensland would be whether such an impediment is a reasonable limit that is
demonstrably justified in a free and democratic society based on human dignity,
equality and freedom.58
[110] It is not fanciful to say that a financial burden imposed on a party when accessing a
court or tribunal may be a contravention of such principles and may not be
50 Civil Procedure Rules 1.1(1) and 1.3.
51 Civil Procedure Rules 3.13, 3.15, 3.18. This does not apply to matters involving more than ten million
pounds.
52 Civil Procedure Rules 3.19(5).
53 Household Financial Comfort Report, 18 th survey July 2020 by DBM Consultants for ME Bank, Figure
16 page 29.
54 Professor Tom Hickman: 'Public Law's Disgrace' and 'Public Law's Disgrace Part 2’, UK
Constitutional Law Association Blogs 9 February 2017 and 26 October 2017.
55 In Golder v United Kingdom ECHR (21 February 1975), [36], (European Court of Human Rights)
considering the similarly worded Article 6 of the European Convention of Human Rights ‘In the
determination of his civil rights and obligations or of any criminal charge against him, everyone is
entitled to a fair and public hearing within a reasonable time by an independent and impartial tribunal
established by law.’
56 Bellet v France ECHR (4 December 1995), [36].
57 Airey v Ireland ECHR (9 October 1979).
58 Section 13(1).
-- 22 of 32 --
23
demonstrably justified. In R (on the application of UNISON) v Lord Chancellor
[2017] UKSC 51 a large UK trade union successfully challenged application and
hearing fees which had been imposed in employment tribunal claims and appeals to
the Employment Appeal Tribunal. In holding that the fees were invalid, the UK’s
Supreme Court said:
68. At the heart of the concept of the rule of law is the idea that society is
governed by law. Parliament exists primarily in order to make laws for
society in this country. Democratic procedures exist primarily in order to
ensure that the Parliament which makes those laws includes Members of
Parliament who are chosen by the people of this country and are
accountable to them. Courts exist in order to ensure that the laws made by
Parliament, and the common law created by the courts themselves, are
applied and enforced. That role includes ensuring that the executive branch
of government carries out its functions in accordance with the law. In order
for the courts to perform that role, people must in principle have
unimpeded access to them. Without such access, laws are liable to become
a dead letter, the work done by Parliament may be rendered nugatory, and
the democratic election of Members of Parliament may become a
meaningless charade. That is why the courts do not merely provide a public
service like any other.
69. Access to the courts is not, therefore, of value only to the particular
individuals involved.
[111] In Australia it is not yet known whether the same approach will be taken as was taken
in Unison.
[112] In any case, the tribunal is designed to provide a level playing field for both the legally
represented and self-represented (leave under section 43 of the QCAT Act is normally
required for a party to be legal represented). This is achieved by the understanding
and specialism of its members, their training,59 the encouragement of members to act
in a way that promotes the collegiate nature of the tribunal,60 and the requirement to
ensure that parties have proper understanding and regard of the practices and
procedures of the tribunal, the nature of assertions made in the proceeding and the
legal implications of the assertions and any decision of the tribunal relating to the
proceeding.61 It is assisted by the use of compulsory conferences, where the purposes
include identifying and clarifying the issues in dispute in the proceeding and
identifying the questions of fact and law to be decided by the tribunal.62 It is also
assisted by the fact that the tribunal is not bound by the rules of evidence, or any
practices or procedures applying to courts of record, other than to the extent the
tribunal adopts the rules, practices or procedures; that the tribunal may inform itself
in any way it considers appropriate and must act with as little formality and
technicality and with as much speed as the requirements of this Act, an enabling Act
or the rules and a proper consideration of the matters before the tribunal permit.63
Finally it is assisted by the tribunal having to ensure, so far as is practicable, that all
59 The President, assisted by the Deputy President, has a duty to ensure that members are adequately and
appropriately trained to enable the tribunal to perform its functions effectively and efficiently, and
attendance at training can be enforced: sections 172 to 174 QCAT Act.
60 Required by section 4(h) of the QCAT Act.
61 Section 29 of the QCAT Act.
62 Section 69.
63 Section 28(3)(b) to (d).
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24
relevant material is disclosed to the tribunal to enable it to decide the proceeding with
all the relevant facts.64 In practice this will often require the tribunal during case
management, and in the hearing, identifying the issues of fact and law to be decided,
the applicable case law to apply, and to be more interventionist than would be the case
in the mainstream courts.
[113] In review applications and occupation regulation matters, a move closer towards costs
following the event would mean that the government or regulatory authority would be
at a greater risk of having to pay costs of a successful party. This seems particularly
inappropriate where the tribunal is being asked to reach the correct and preferable
decision by a fresh hearing on the merits.65
[114] A corollary of this would be that the government or regulatory authority would have
a better chance of obtaining their costs if successful because generally they would be
legally represented [a State agency is a circumstance supporting leave: section
43(3)(a) of the QCAT Act]. The current position is that government or regulatory
authorities very rarely apply for costs, but it could be foreseen that if costs orders are
more readily made against them then they may start applying for costs if successful
as a matter of course.
[115] There is authority describing the ‘chilling effect’ of too readily making costs orders
against applicants in administrative tribunals where the parties are normally expected
to bear their own costs.
[116] As it was put by Deputy President Britton in Murtough v NSW Bar Association [2008]
NSWADT 166:
A determination of the question whether costs should be awarded requires a
balance to be struck between the ‘chilling effect’ of too readily ordering costs
against complainants (see Maylor (No.2) v Mid North Coast Area Health
Service [2001] NSWADT 118 at [23]) and the need to ensure that parties
conduct their cases in such a way that costs are not unnecessarily incurred or
forced on others. The real questions to be determined are whether, due to a
combination of factors, circumstances have arisen that displace the general
presumption against an order for costs and, if so, whether the order ought be an
order for costs of the entire proceedings or an order for the costs in relation to
part of the proceedings.
[117] Accessibility is not only important for applicants. As Senior Member Oliver said in
Fuge v Queensland Building and Construction Commission [2014] QCAT 383 when
refusing costs to an applicant for a review which was wholly successful, and having
pointed out that review proceedings are not adversarial:66
Here, not only does the Commission have an obligation to assist the Tribunal,
it also has to have regard to the objects of the QBCC Act. It has a statutory
obligation to administer the Act, to ensure that industry standards are
maintained, and achieve a reasonable balance between the interests of building
contractors and consumers. This is particularly so in circumstances where
registered builders are directors of companies that go into liquidation, or
become bankrupt, which inevitably results in financial harm to financial
64 Section 28(3)(e).
65 As required by section 20 of the QCAT Act.
66 [13] and [28].
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25
institutions, trade creditors and homeowners. It also brings the industry into
disrepute.
..
I reiterate that under the QBCC Act, the Commission has a dual function in
administrating the Act. That is, to protect the public interest and also the
interests of building contractors. In doing so it must not be reticent in
discharging its obligations for fear of adverse costs orders against it if it is
unsuccessful in responding to an application for review of its decisions unless
it can be demonstrated, there is some specific conduct on the part of the
Commission, that would ‘so compellingly’ overcome the strong contra-
indication against costs orders in s 100 of the QCAT Act. I am not satisfied that
this is the case here.
Prevention of abuse
[118] The need to prevent abuse of low cost or no cost dispute resolution offered by tribunals
such as QCAT was recognised by Judicial Member Britton sitting with two members
of the Equal Opportunity Division of the NSW Administrative Decisions Tribunal in
Maylor (No. 2) -v- Mid North Coast Area Health Service [2001] NSWADT 118. The
costs provisions applying to that tribunal were that if a complaint was dismissed the
tribunal may order the complainant to pay the respondent’s costs, notwithstanding the
statutory presumption that each party will bear its own costs.67
[119] Referring to these provisions, the tribunal said:68
It is clearly Parliament’s intention that potential complainants not be
discouraged from pursuing complaints by the threat of an award of costs, unless
the pursuit of the complaint is so entirely unmeritorious that it ought never to
have been brought in the first place.
Respondents unjustly pursued and forced to defend themselves at significant
cost have a general right to expect that the Tribunal will take appropriate action
to compensate them for the reasonable and necessary costs of meeting the case
mounted against them, and to deter vexatious, frivolous or unmeritorious
complainants from further pursuing them.
11 In Langley v University of NSW (1984) EOC 92-018 at 75,468, Hutley J said:
In my opinion, the complaints in this case lacked any conceivable merit
in fact of law. Under those circumstances my only criticism of the
proceedings so far is that this was a case in which the complainant was
not ordered to pay the costs by the Tribunal. That is the one effective
sanction available to keep this Act within bounds and to ensure it will not
be made the subject of gross abuse.
[120] It is notable in this respect that section 47 of the QCAT Act empowers the tribunal to
make an order for costs following dismissal or strike out because the proceeding is
frivolous, vexatious, misconceived, lacking in substance or an abuse of process.
Meeting expectations
[121] To my mind, if a party is taken by surprise by an application for costs which
unexpectedly appears to have a prospect of success, this may well be unfair to the
67 Specific costs provisions in sections 111(1) and 111(2) of the Anti-Discrimination Act 1977 (NSW).
68 [8], [10], [11].
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26
party. Section 29 of the QCAT Act requires the tribunal to ensure that each party
understands (i) the practices and procedures of the tribunal; (ii) the nature of assertions
made in the proceeding and the legal implications of the assertions; and (iii) any
decision of the tribunal relating to the proceeding. I think this means that parties must
have informed knowledge of any serious risk as to costs when they are a party to
tribunal proceedings.
[122] Until recently, a party to a review application in the tribunal would be advised that if
they or the other side were legally represented, usually there would be no order for
costs. This would be based on the wording of sections 100 and 102 as understood in
the published decisions.
[123] This would mean that a person who wished to seek a review of a government decision
like, for example the refusal of a Blue Card, would reasonably believe that if the
application were unsuccessful it would be unlikely that they would have to pay the
government department’s legal costs. In turn, such an applicant would reasonably
believe that if they wanted to be legally represented in the tribunal and had leave from
the tribunal for this, then it would be unlikely that they would be able to recover these
costs from the government department. In other words, this would be a luxury that
they would have to pay for themselves.
[124] The promotion of the quality and consistency of tribunal decisions and the
enhancement of the quality and consistency of decisions are objects of the QCAT
Act,69 and the tribunal must ensure like cases are treated alike.70
[125] Because of the above matters, I think that parties would need to be warned if the
tribunal was more likely in the future to award costs to a successful party than before.
What is the impact of legal representation being reasonably necessary and the
erosion of the fruits of success if there is no costs order?
[126] This is important because in their sweep up submissions both MSQ and PSP rely on
the fact of their legal representation being reasonably necessary and their success in
the proceedings as showing that the interests of justice require the tribunal to make an
order for costs in their favour.
[127] Unfairness if no order is made in those circumstances, where the fruits of success
would be eroded, was recognised by Keane JA in Tamawood Ltd & Anor v Paans
[2005] QCA 111:71
There is a clear distinction, in terms of the interest of achieving justice, between
the mere fact of having representation and the fact of having reasonably
obtained that representation because of the complexity of the case. In the
absence of countervailing considerations, where a party has reasonably incurred
the cost of legal representation, and has been successful before the Tribunal, it
could not rationally be said to be in the interests of justice to allow that success
to be eroded by requiring that party to bear the costs of the representation which
was reasonably necessary to achieve that outcome.
69 Section 3(c) and 3(d)
70 Section 4(d).
71 [33].
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27
[128] In their submissions, PSP rely on this passage in Cowen v Queensland Building and
Construction Commission [2021] QCATA 103, at [67] where Judicial Member
McGill SC described this starting point:
The question is whether the interests of justice require that an order for costs,
and what order be made. In my opinion the starting point as to the
identification of the interests of justice is the passage from Tamawood cited
earlier: that it would be unjust for the appellants’ success to be substantially
eroded by having to pay their own costs incurred in achieving their success in
the first review. This was a case where the appellants’ legal expenses were
reasonably incurred. It is then a question of whether there are any relevant
countervailing considerations, and what comes from a consideration of the
specific matters in the QCAT Act s 102(3).
emphasis added
[129] This view, that Keane JA’s dicta is a starting point where both sides are represented
with good reason is only available if approach (b) considered earlier is the correct
approach. This is because if approach (a) is correct instead, then the starting point is
that each party shall bear their own costs.
[130] If the Cowen starting point were to be adopted in the tribunal generally it would be a
significant departure from the approach taken on costs in the past, changing
expectations from ‘usually there will be no order for costs’ to ‘usually costs will
follow the event where legal representation is ordered’. This is because it is to be
assumed that the tribunal would not grant a party leave for legal representation unless
it was reasonably necessary. This certainly seems to be the principle of section 43 of
the QCAT Act which permits the tribunal to allow representation.
[131] On that basis, if such a party were successful it would seem to be almost impossible,
in the absence of countervailing circumstances, for the tribunal to decline an award of
costs because to do otherwise would be ‘irrational’ according to the dicta of Keane JA
in Tamawood in the passage above.
[132] In the light of such potential for irrationality, exactly what countervailing
circumstances might overcome the new starting point is unclear. In reality it is
probable that in most cases the starting point of legal representation being reasonably
necessary would simply produce the costs outcome. In other words, if the tribunal
gives leave for a party to be legally represented due to the complexity of a matter, and
that party is successful, then a costs order in favour of that party would usually be
made.
[133] However, I have not found any past tribunal decision where legal representation being
reasonably necessary has been regarded as a starting point for an award of costs in the
sense that once that is shown, in the absence of countervailing considerations there
should be an award of costs.
[134] CH v Queensland Police Service [2021] QCATA 137 does not seem to support the
Cowen starting point. There the Deputy President, Judge Allen QC, agreed with the
conclusions of Judicial Member McGill SC in Marzini and with his observations in
Cowen. But he seems to have taken care to specify which particular conclusions and
observations he agreed with, and despite it being directly relevant to the matter before
him, he does not refer to the starting point. Instead of relying on the starting point,
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28
the Deputy President simply stated that he considered that the interests of justice
required a costs order in the circumstances of the case.72
[135] For legal representation being reasonably necessary to be a starting point for an award
of costs in the tribunal seems particularly inappropriate when considering the position
of a government agency whose decision is found to have been the correct and
preferable one on review by the tribunal, or a disciplinary body whose disciplinary
action is found to be justified by the tribunal. Such agencies or bodies will almost
always be legally represented either by in-house or external lawyers, and reasonably
so. It cannot be the case that the starting point is that they will be awarded costs.
[136] Until now it has been extremely rare for such bodies to make an application for costs,
other than such costs as may be expressly contemplated by statute. And to permit
such costs order to be made has been described as a ‘chilling effect’ (considered above
when considering accessibility).
[137] Instead, although the passage from Tamawood set out above has been applied many
times in the tribunal it is regarded only as a factor to take into account, but not a
conclusive one.
[138] It seems that this is largely because in Ralacom Pty Ltd v Body Corporate for Paradise
Island Apartments (No.2) [2010] QCAT 412, Justice Alan Wilson, President, pointed
out that the QCAT costs provisions more plainly indicate (than the provisions being
considered in Tamawood) that the legislature had turned its face against awards of
costs in this tribunal. Hence he said, Keane JA’s dicta should be ‘considered in the
light of the difference’ between the two provisions and that ‘the principles found in
Tamawood provide guidance about the circumstances in which it may be in the
interests of justice for this tribunal to award costs against parties.’
[139] A typical example of this applying in practice was Bell v State of Queensland & Anor
[2015] QCAT 369 where the applicant was partially successful in a sexual harassment
allegation and was awarded compensation of $9,000 which was completely
swallowed up in her legal costs. She claimed costs of some $113,000 from the
respondents. In considering this, Member Ann Fitzpatrick said:73
I accept the respondents’ proposition that just because a matter justifies legal
representation does not mean a successful party is entitled to a costs order.
However, in this case I consider that the level of complexity of the case was
such as to warrant legal representation in order to achieve the success Mrs Bell
did achieve. I consider that the guidance given by Keane JA, is apposite and
that it is not in the interests of justice for Mrs Bell to have her award completely
eroded by the costs of representation.
I do not find that the need for legal representation entitled the payment of costs.
I do not find that this is the test prescribed by ss100 and 102. I find that it is a
relevant factor in the exercise of my discretion that, as Keane JA said, in the
absence of countervailing considerations, where a party has reasonably incurred
the cost of legal representation, and has been successful before the Tribunal, it
could not rationally be said to be in the interests of justice to allow that success
to be eroded by requiring that party to bear the costs of the representation which
was reasonably necessary to achieve that outcome.
72 [16].
73 [41], [42].
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29
[140] The Appeal Tribunal has also taken this approach, for example Bakir v Body
Corporate for Chevron Renaissance & Ors (No 4) [2019] QCATA 28, where Senior
Member Brown Senior Member Howard said:74
The engagement of legal representatives for a complex case may, in the absence
of countervailing considerations, be a basis for awarding costs. However the
fact of legal representation does not, of itself, compel the conclusion that an
award of costs is in the interests of justice. Other factors must be taken into
consideration including the nature and complexity of the proceedings, the
relative strength of the applicant’s claim, whether legal representation was
required to achieve a just result and the extent to which a party’s success in a
proceeding is eroded by bearing their own costs.
[141] Greater weight seemed to be put on the fact of the fact of legal representation being
necessary in Turner v Macrossan & Amiet Pty Ltd (No 2) [2016] QCAT 255, where
Justice Carmody said that Keane JA’s remarks in Tamawood should be treated with
some circumspection but that the fact that legal representation was required to ensure
that the respondent secured a just result was a significant factor in favour of a costs
order but was not conclusive.75
[142] It would seem that the principle might apply not only where legal representation is
required because of the complexity of the matter, but also where legal representation
is required because of the vulnerability of a party or because of the way a case is
presented by another party. Thus in Campbell v The Body Corporate for 70 Bowen
St CTS 15330 & Ors (costs) [2020] QCATA 26 the tribunal awarded costs where an
appeal from a departmental Adjudicator was hopeless, where the appellant was legally
represented and the appeal was argued in such a way that the respondent had little
choice but to engage a lawyer.
[143] Sometimes a distinction is made based on the type of success achieved in the
proceedings, so that the tribunal is able to consider whether in truth the fruits of such
success would be eroded by no order for costs. For example, in a permitted individual
review heard by Member Ann Fitzpatrick, Samimi v Queensland Building Services
Authority [2012] QCAT 133 she said:76
I find that the applicant perceived a complexity in the matter which compelled
him to seek legal assistance. However, I do not think that just because it is
reasonable to be legally represented, that costs must necessarily follow without
some other compelling reason, such as a party being deprived of the benefit of
an award by the need to pay legal costs, as discussed in Tamawood Limited &
Anor v Paans.
[144] In that case Member Fitzpatrick set aside the QBSA’s decision that the applicant was
not a permitted individual, she decided not to award costs against the QBSA because
it was not a case where a money order had been achieved which was likely to be
seriously eroded by the need to pay costs to a successful party’s lawyers, thus
diminishing the effect of the order.77
[145] This same approach was taken recently in Holgar v Chief Executive, Department of
Justice and Attorney-General & Ors [2022] QCATA 27 a party was automatically
74 [56].
75 [33].
76 [13].
77 [26].
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30
joined to an application to review a decision made by the Chief Executive not to allow
a claim from the claim fund established under the Agents Financial Administration
Act 2014 (Qld). The application for review was unsuccessful and went on appeal,
which also failed. In other words the tribunal confirmed the decision made by the
Chief Executive to refuse the applicant’s claim from the claim fund. The joined
parties applied for their costs of the appeal against the applicant.
[146] In declining to make an order for costs, Senior Member Howard and Member
Fitzpatrick distinguished Tamawood and Cowen on the basis that the absence of a
costs order did not ‘substantially erode’ the joined party’s success because the party
had only preserved its financial situation.78 In other words these two scenarios were
distinguished:
(a) where the joined party had reasonably incurred legal costs and was successful
because a decision was confirmed so that the party had preserved its financial
position;
(b) where a party had reasonably incurred legal costs and was successful because a
decision was set aside so the party would achieve a positive financial benefit
which would be substantially eroded if no costs order were made.
[147] It would remain to be seen whether in practice this distinction is workable. For my
part, I find it difficult to see why there should be a distinction in the two approaches
based on whether or not the party’s financial position was improved by receiving
money, rather than being improved by not having to pay money.
Conclusion as to the impact of legal representation being reasonably necessary and
the erosion of success if there is no costs order
[148] My conclusion after considering these authorities is that the fact of legal
representation for the costs applicants being reasonably necessary either because of a
special need on their part, or because of the complexity of the proceedings or because
of the behaviour of the other party is a factor in favour of costs but is not conclusive.
It will be a more significant factor if the financial effect upon the successful party of
having to pay all their own costs, would erode the fruits of the success.
[149] There are no blanket rules about this, or new tests to apply. Instead, it is one of the
relevant considerations for the tribunal to consider under section 102(3) when
deciding whether the interests of justice require it to make a costs order. Since the
discretion needs to be exercised to achieve the aims and objects of the QCAT Act and
since the interests of justice is not limited to fairness between the parties themselves
but extends to the public interest, including the administration of justice, the wider
effect of the decision about costs on accessibility, prevention of abuse and meeting
parties’ expectations needs to be considered. This needs to be balanced against the
extent to which it is fair to make the order having regard to the impact of that upon
both parties.
Should costs be awarded in these applications?
[150] I am following the tribunal’s traditional line of authority which is that section 100 is
the usual rule (a starting point) which when read with section 102 means that each
party bears their own costs unless the interests of justice require otherwise. So the
78 [20(c)]. For the ‘substantial erosion of success’ factor see Cowen, [67] and [75] and Tamawood, [33].
-- 30 of 32 --
31
question that will usually arise is whether the circumstances relevant to the discretion
inherent in the phrase ‘the interests of justice’ point so compellingly to a costs award
that they overcome the strong contra-indication against costs orders in section 100. I
shall also regard the fact of legal representation for the costs applicants being
reasonably necessary as a factor in favour of costs but not conclusive, and try to
achieve the balancing act of private and public interests referred to above.
[151] I go back to my consideration of the points relied on by the costs applicants at the
beginning of these reasons.
[152] As for BMP’s motive and conduct, although I am left with the impression that BMP
was intent upon not only being uncooperative with the handover to PSP, but was
indeed trying to disrupt it by bringing the application for a stay as PSP submits, it
would be unfair to BMP to find this as a fact. And having regard to my findings about
BMP’s evidence it cannot be said that the evidence was knowingly untrue or
contrived.
[153] Overall, it is difficult to see how BMP’s conduct, in so far as it can be criticised, can
be any more than a limited factor when considering whether the interests of justice
require an order for costs to be made.
[154] It is true that the proceedings were heavily of a commercial nature, but that is only a
factor to consider as many such review proceedings are of that nature. It is true that
the amount at stake was more than usual but it is difficult to see how that could affect
the question of costs.
[155] It is true that the merits turned out to be poor but as found above, when the application
was made, the merits would have appeared much better, and because of the speed that
the tribunal dealt with the application there was probably little opportunity to end the
proceedings once they had gathered momentum.
[156] It is true that two applications made by BMP were incorrect but it does not appear that
costs were enlarged because of this.
[157] Following the lines of authority which I have chosen, the sweep up submission (that
costs should follow the event where the successful party necessarily required legal
representation) is persuasive only. It is not a starting point or itself conclusive on the
question of costs.
[158] Considering MSQ’s costs first, it is very unusual for a government agency or
regulatory authority to apply for costs in a review.
[159] One example when such an order was made was Warren v Queensland Law Society
Incorporated (No 2) [2013] QCAT 234, where Justice Alan Wilson, President,
awarded costs to QLS in a case where the applicant’s conduct during the proceedings
bordered on the egregious, having pursued proceedings ‘which had little apparent
merit and, on any realistic assessment, poor prospects and has done so in a way which
has greatly added to the costs of her opponent’.79
[160] In Magill v Queensland Law Society Inc (No 3) [2020] QCAT 327, [12], Justice
Daubney, President, when dealing with another application for costs by the QLS,
contrasted the situation with Warren. He said that applicant always had an arguable
79 [42].
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32
case, and was seeking a review which was required to be heard and determined by
way of a fresh hearing on the merits and in which he could adduce fresh evidence, but
albeit was unsuccessful. Although if there was a no costs order the QLS would have
to meet its costs from its own funds that was a necessary function and unavoidable
consequence of the respondent’s statutory position as a ‘regulatory authority’. In the
circumstances the applicant had a lawful entitlement to have access to the tribunal’s
review jurisdiction, which exists in a prima facie ‘no costs’ environment. The matter
was conducted expeditiously and efficiently. It had not been demonstrated that the
interests of justice overcome the mandated primary ‘no costs’ policy.
[161] It is the case that the tribunal was very much assisted in coming to its conclusion by
the evidence filed by MSQ, and it is correct to say that in this review MSQ had no
choice but to participate fully in the proceedings, both in compliance with its statutory
obligation to help the tribunal and to provide relevant documents and evidence,80 but
also because the integrity of pilotage in the Brisbane Pilotage Area was at stake.
[162] But the factors I have considered above put this matter much closer to Magill than to
Warren and having regard to those other considerations which would be of concern if
costs are too readily awarded against an unsuccessful applicant for review, the fact
that MSQ would normally expect to have to bear its own costs, and so the financial
impact meets those expectations, I do not think that the tribunal is required to make
an order for costs in the interests of justice. I decline to make an order for costs against
BMP in MSQ’s favour.
[163] Turning to PSP’s application for costs, their position differs from MSQ’s in that the
PSP parties were all joined as interested parties. It is not suggested in the costs
submissions however, that a joined party has a better case to be awarded costs in a
review than a government agency or regulatory authority, solely by the fact of the
joining. The Appeal Tribunal decision in Holgar v Chief Executive, Department of
Justice and Attorney-General & Ors [2022] QCATA 27 demonstrates that a joined
party does not have a better case for costs solely on that ground. So the same
principles apply to a joined party applying for costs as they apply to a government
agency or regulatory authority doing so – one important one being the concern in
reviews of the ‘chilling effect’ of too readily awarding costs against regulatory
complainants.
[164] It is the case that the tribunal was also very much assisted in coming to its conclusion
by the evidence filed by PSP. And instinctively the heavily commercial and
adversarial nature of this review would lead to the conclusion that costs should follow
the event.
[165] On the figures that I have seen the financial impact on PSP of having to pay its own
costs will not be significant and so it is difficult to say that the fruits of its success in
the litigation will be eroded if there is no costs order. Having regard to all the
considerations above, I do not think that the tribunal is required to make an order for
costs in the interests of justice. Therefore I also decline to make an order for costs
against BMP in favour of PSP.
80 Under section 21 of the QCAT Act.
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Official source: https://www.sclqld.org.au/caselaw/QCAT/2022/225