Barnett & Anor v Pirrone & Anor [2019] QCATA 166
QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL
CITATION:
PARTIES:
Barnett & Anor v Pirrone & Anor [2019] QCATA 166
CHRIS BARNETT
(first applicant\appellant)
NICOLA ZOE ANGEL
(second applicant\appellant)
v
MARIO PIRRONE
(first respondent)
NICOLA JULIE PIRRONE
(second respondent)
APPLICATION NO/S: APL001-19
ORIGINATING
APPLICATION NO/S:
NDR182-16; MCDO752-18 Brisbane
MATTER TYPE: Appeals
DELIVERED ON: 11 December 2019
HEARING DATE: 2 October 2019
HEARD AT: Brisbane
DECISION OF: Senior Member Aughterson presiding
Member Howe
ORDERS: Leave to adduce fresh evidence on appeal refused.
Leave to appeal granted.
The appeal is allowed.
The decision of the Tribunal made 16 November
2018 is set aside.
The respondents pay the appellants costs of the
proceedings on an indemnity basis from 24 May
2018 fixed in the sum of $14,066.25.
The respondents pay the appellants costs of appeal
in the amount of the filing fee of the application for
leave to appeal and appeal of $676.40.
CATCHWORDS: APPEAL AND NEW TRIAL – APPEAL GENERAL
PRINCIPLES – ADMISSION OF NEW EVIDENCE –
whether error by tribunal – whether leave should be given
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PROCEDURE – CIVIL PROCEEDINGS IN STATE
AND TERRITORY COURTS – COSTS – where appeal
against costs order – where leave to appeal costs order
required – whether error by tribunal – whether leave should
be given – whether appeal tribunal should make order for
costs – whether costs should be on indemnity basis
Commercial and Consumer Tribunal Act 2003 (Qld), s 71
Neighbourhood Disputes (Dividing Fences and Trees) Act
2011 (Qld), s 31
Queensland Civil and Administrative Tribunal Act 2009
(Qld), s 46, s 100, s 102, s 142(3)(a)(iii), s 146
Uniform Procedure Rules 1999 (Qld), r 304(2), r 307(2)
Booth v Helensvale Golf Club Ltd [1997] 2 Qd R 141
Colgate Palmolive v Cussons Pty Ltd [1993] FCA 536;
(1993) 118 ALR 248
Department of Child Safety, Youth and Women v PJC and
the Public Guardian [2019] QCATA 109
Fountain Selected Meats (Sales) Pty Ltd v International
Produce Merchants Pty Ltd [1988] FCA 202; (1988)
81 ALR 397
Harrison and Anor v Meehan [2016] QCATA 197
J-Corp Pty Ltd v Australian Builders Labourers
Federation Union of Workers – Western Australian
Branch and Building Trades Association of Unions of
Western Australia (Association of Workers) [1993]
FCA 42
Lominoga v Lominoga [1930] QWN 12
Orr v Orr [1949] QWN 5
Petavrakis v Hirst & Co [2001] QSC 224
QBCC v Crocker [2018] QCATA 194
Ralacom Pty Ltd v Body Corporate for Paradise Island
Apartments (No 2) [2010] QCAT 412
Rathie v ING Life Ltd [2003] QSC 429
Richards v Richards [1933] QWN 12
Sharpe v Wren [1917] St R Qd 817
Tetijo Holdings Pty Ltd v Keeprite Australia Pty Ltd
[1991] FCA 187
Applicant: Self-represented
Respondent: Self-represented
REASONS FOR DECISION
[1] This matter involves an appeal about costs. The respondents in the appeal were the
applicants in the hearing at first instance. In these reasons they are referred to as the
respondents.
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[2] In November 2016, the respondents filed in the Tribunal an application concerning a
tree dispute. They claimed that tree roots from trees on the appellants’ property had
caused and were causing serious damage to a timber retaining wall on their land.
[3] As is outlined below, it later emerged that there was a lack of clarity as to what factors
caused or contributed to the damage to the retaining wall. In particular, there was a
lack of clarity as to the extent to which, if at all, the trees or tree roots contributed to
the damage. That gave rise to the question of whether the Tribunal was the proper
forum to determine the matter, given its limited jurisdiction under Chapter 3 of the
Neighbourhood Disputes (Dividing Fences and Trees) Act 2011 (Qld) (‘the Act’).
[4] On 31 May 2018, the respondents also filed in the Tribunal a separate application
seeking an order from the Tribunal in relation to a dividing fence on the boundary
between the properties and at the top or near to the top of the retaining wall.
[5] In directions made on 17 July 2018, the matters were consolidated and came on for
hearing on 5 September 2018.
[6] At the outset of the hearing it was noted that no notice to fence had been given
pursuant to s 31 of the Act and, accordingly, the Tribunal lacked jurisdiction to hear
the fencing matter. That application was dismissed. Shortly thereafter, following a
reminder by the learned Member as to the jurisdiction of the Tribunal relative to
matters impacting the retaining wall other than trees, the matter was stood down for
some hours to enable the parties to consider their positions.
[7] The respondents then indicated that they wanted all matters affecting the retaining
wall to be dealt with together as one dispute and, as such, would withdraw their
application relating to the tree dispute. A formal withdrawal was filed one week later.
[8] The appellants sought their costs against the respondents. The learned Member
refused their application and ordered that each party bear their own costs in the
proceedings. The appellants seek leave to appeal that decision.
Leave is necessary given this is an appeal about a costs order.1 The criteria for
determining whether leave should be granted are well established: is there a
reasonably arguable case of error in the primary decision, is there a reasonable
prospect that the applicant will obtain substantive relief, is leave necessary to correct
a substantial injustice to the applicant caused by some error, and is there a question of
general importance upon which further argument and a decision of the appellate court
or tribunal would be to the public advantage.2
[10] The grounds of appeal are that the learned Member erred:
(a) in not awarding costs in favour of the appellants;
1 Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 142(3)(a)(iii)
2 Harrison and Anor v Meehan [2016] QCATA 197; QBCC v Crocker [2018] QCATA 194, [4];
Department of Child Safety, Youth and Women v PJC and the Public Guardian [2019] QCATA 109,
[14].
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(b) by considering an irrelevant factor, namely that “both sides are quick to
apportion blame”;
(c) by not taking into account or providing sufficient weight to the fact that Mr and
Mrs Pirrone had sought and received legal advice and nevertheless subsequently
pursued their application;
(d) by not taking into account that the costs incurred in the Tribunal proceedings
may not be recoverable in any subsequent proceedings in the Magistrates Court;
(e) because costs should have been awarded against Mr and Mrs Pirrone due to their
decision to pursue an application which they knew or ought to have known was
incompetent, vexatious and/or frivolous causing the applicants to incur
significant and unnecessary costs.
[11] Complaint (a) is not in itself a ground of appeal. In essence, the submissions made by
the appellants are that the learned Member erred in failing to take proper account of
the fact that the respondents pursued an application that they knew or ought to have
known was incompetent, and in relation to which the appellants incurred significant
and unnecessary costs, in circumstances where ultimately the application was
withdrawn.
Governing principles
[12] In the Tribunal the following provisions of the Queensland Civil and Administrative
Tribunal Act 2009 (Qld) (‘the QCAT Act’) apply to 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—
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(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] In Ralacom Pty Ltd v Body Corporate for Paradise Island Apartments (No 2),3 Wilson
J explained that in some circumstances this usual rule as to costs in the Tribunal may
not be appropriate and circumstances in that regard are provided for in s 102 of the
QCAT Act. Wilson J said:
Under that subsection QCAT has a discretion to make a costs order ‘…if the
tribunal considers the interests of justice require it…’. Section 102(3) says that,
in deciding whether to award costs, the tribunal may have regard to matters not
dissimilar to those set out in s 71 of the CCT Act4 including, in particular for
present purposes, the nature and complexity of the dispute and the relative
strength of each party’s claims.
Under the QCAT Act the question that will usually arise in each case in which
costs are sought 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 s 100.
[14] In her reasons for decision, the learned Member referred to Ralacom and then
proceeded to consider the nature and complexity of the dispute and the relative
strengths of the parties’ cases. She concluded that she could not assess the merits of
the respondents’ case as the matter had not progressed through to a full hearing. She
therefore concluded that the usual rule should apply with each party bearing their own
costs.
[15] However, the circumstances supporting the decision in Ralacom were quite different
to those applying to the matter at hand. In Ralacom the application was heard and
determined on its merits, or rather its lack of merits, and the statements made in that
decision should be understood in that context. Here, the application was withdrawn
by the respondents before any assessment as to the merits could be undertaken. That
circumstance was entirely the choice of the respondents. They did not require leave to
withdraw their application. Section 46 of the QCAT Act provides:
Withdrawal of application or referral
(1) An applicant may, in the way stated in the rules, withdraw the applicant’s
application or referral for a matter before the matter is heard and decided
by the tribunal.
3 [2010] QCAT 412, [28]-[29].
4 Commercial and Consumer Tribunal Act 2003 (Qld): the legislation governing the Commercial and
Consumer Tribunal, a predecessor to QCAT
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[16] Under the Uniform Civil Procedure Rules 1999 (Qld) (‘UCPR’) the position is
different. If an applicant has not discontinued within the period allowed under the
rules (that is, by the time a defence is filed) then leave of the court to discontinue is
required.5 In those circumstances the court may make an order as to costs caused by
the withdrawal or discontinuance as it considers appropriate.6
[17] In cases where a matter is withdrawn or discontinued by the applicant late in the
proceedings and the question of costs is raised, the legal test to be applied is whether
the applicant acted reasonably in commencing and after that maintaining the
proceedings which the applicant no longer pursues.
[18] In Booth v Helensvale Golf Club Ltd,7 Mackenzie J explained the relevant principles
as follows:
Turning now to the principles to be applied, in Compadres I adopted and applied
propositions derived by Hill J. in Australian Securities Commission v. Aust-Home
Investments Ltd (1993) 11 A.C.S.R. 136 to the following effect:
‘‘(a) where neither party desires to proceed with litigation the court should be
ready to facilitate the conclusion of the proceedings by making a costs
order;
(b) it is appropriate to determine whether the applicant acted reasonably in
commencing the proceedings and whether the respondent acted reasonably
in defending them;
(c) that in some cases it may be appropriate to consider the conduct of a
respondent prior to the commencement of the proceedings where such
conduct may have precipitated the litigation; and
(d) that while the fact that interlocutory relief may have been granted may be
taken into account that fact carries no implication as to the ultimate merits
of the case but does ordinarily suggest that there was an arguable issue to
be tried between the parties and that the balance of convenience favoured
the grant of that relief.’’8
[19] On that basis, the issue of the prospects of success is not central. In Rathie v ING Life
Ltd,9 a matter involving third-party proceedings where a defendant made an
application prior to the hearing for leave to discontinue the third-party proceeding it
had commenced, Mullins J said:
… the plaintiff sought to argue that the claim for misrepresentation made by the
defendant in the third party proceeding was weak. On an application of this
nature, it is neither appropriate nor possible to assess the prospects of success
of causes of action which are now not to be pursued by the relevant party, unless
it is patent that there were no prospects of success.10
5 UCPR, r 304(2).
6 UCPR, r 307(2).
7 [1997] 2 Qd R 141.
8 Ibid 142.
9 [2003] QSC 429.
10 Ibid [49].
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[20] A statement to similar effect was made by White J in Petavrakis v Hirst & Co,11 in
giving leave to the plaintiff to discontinue and in making an award of indemnity costs
against the discontinuing plaintiff:
It is important to make clear that this decision in no way deals with the merits
of any allegations between the parties of a substantive kind. The decision is
based on matters of procedure and reference to facts not in dispute.
[21] In our view, in failing to address the principles applicable to cases where an applicant
withdraws or discontinues late in the proceedings, the Tribunal at first instance fell
into error. That is, in failing to consider whether the respondents acted reasonably in
commencing and maintaining the proceedings prior to the withdrawal, and whether
the appellants acted reasonably prior to and in defending the proceedings.
[22] Leave to appeal should be granted and the appeal allowed.
[23] By s 146 of the QCAT Act, where there is a successful appeal against a decision on a
question of law the Appeal Tribunal may, among other things, make any order it
considers appropriate. Given that the question of costs here is not based on an
assessment of the prospects of success but on matters of procedure and by reference
to facts not in dispute, the Appeal Tribunal is well able to consider whether costs
should be awarded and, if so, what the appropriate order should be.
The commencement and progress of the proceedings
[24] The parties exchanged correspondence before the tree dispute application was filed.
In a letter dated 4 November 2016 from the respondents to the appellants the
respondents suggested that both parties engage an engineering expert to mediate a
solution and that both parties have an opportunity to give their opposing views to the
engineer. The respondents then set out their view of the matter as follows:
A timber sleeper retaining wall between our two properties has a dangerous lean
and in my opinion presents a real risk to life and property, particularly as the most
precarious lean is directly next to our clothes line, a high traffic area.
The timber sleeper retaining wall was not designed to withstand the additional
stresses of landscaping work which was undertaken by the neighbour occupying
the higher property in 2008. This work comprised adding additional metres of fill
and rock on top of the natural lay of the land. I am concerned that the additional
volume of soil now retained behind the wall has affected the wall’s structural
integrity.
In addition, the root structure of the trees planted close to the retaining wall are
also causing the wall to lean at a precarious angle.12
[25] However, in the initial application for a tree dispute, at item 11, the principal cause of
damage to the retaining wall was reversed. The respondents claimed that tree roots on
the appellants land had seriously damaged the retaining wall and that there was a high
probability that the retaining wall and a dividing fence on top would collapse. In that
11 [2001] QSC 224, [46].
12 Application for a Tree Dispute filed 16 November 2016, Attachment 7.
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event, the landfill, rocks and trees on the appellants’ land might collapse onto the
respondents’ home. On the question of whether there was any other factor contributing
to the injury or damage, reference was made at item 15 of the initial application to
landfill and rocks behind the retaining wall.
[26] The respondents sought various orders: for an arborist to prepare a report; for an
appropriate qualified engineer to prepare a report; and an order ‘to share the cost of
remediation work on the boundary fence and retaining wall’.
[27] In their response, the appellants disputed that the trees caused a problem. They
maintained that the trees were chosen because of their non-invasive root systems.
[28] At a directions hearing held on 2 February 2017, a Senior Member of the Tribunal
considered an application for an order that the parties share the cost of an engineer’s
report concerning the retaining wall. The Senior Member raised the question of
whether the Tribunal had jurisdiction to deal with the retaining wall issue. The
respondents said that the tree roots were a factor causing damage to the retaining wall,
though the extent was unknown. Hence the engineer’s report was sought. The
respondents stated that they believed that it was a combination of tree roots and
weight, meaning land fill and a swimming pool, constructed by the appellants.
[29] The application to share costs was refused on the basis that such a report was a matter
for the respondents, as it was their claim that the damage to the retaining was
attributable to tree roots. From a perusal of the transcript of those proceedings, it is
clear that the Senior Member raised the question of the Tribunal’s jurisdiction to deal
with problems associated with the retaining wall if the damage was not caused by
trees or tree roots.
[30] On 27 February 2017, the respondents obtained a report from Baxter Consulting
Engineers. The instructions to those engineers were broad, namely to inspect the
retaining wall and identify the likely causes of significant movement.
[31] The engineer concluded that the presence of trees in close proximity to the retaining
wall could provide an additional load to the retaining wall. However, it was added that
the construction of a boulder wall on top of the fill zone behind the retaining wall
exceeded 1m in height and as such should have been engineer designed. It provided a
significant additional surcharge load on the retained earth behind the retaining wall.
Further there appeared to be inadequate drainage on top of the retaining wall in the
neighbouring property. Finally, the engineer referred to the construction of a
swimming pool in close proximity to the retaining wall, which might also have
increased the load upon the retaining wall.
[32] It is clear from that report that the tree issue was only one of a number of factors
possibly causing damage to the retaining wall.
[33] The matter came on for further directions before another Senior Member on 6 April
2017. At that further directions hearing, the Senior Member was clearly aware of the
engineering report obtained by the respondents and by that time the appellants had
also obtained their own engineering report. The latter report was at odds with the
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conclusions reached by Baxter Consulting Engineers in relation to the contribution of
the trees and roots to damage to the retaining wall.
[34] A perusal of the transcript of the directions hearing suggests the primary concern of
the respondents at that stage was the claimed inadequate construction of the boulder
wall behind the retaining wall. At the directions hearing the Senior Member made it
clear to both parties that the Tribunal had no jurisdiction to direct rectification of
defective retaining walls in the absence of damage caused by trees. He said:
This dispute is only about the trees and whether the trees are responsible for
what you say is a serious damage to your land or property on your land. Now,
if in fact the cause of that are other issues relating to the engineering or design
or construction of retaining – of terraced walls, boulder walls, that’s not going
to found any jurisdiction by the tribunal, and you won’t have any satisfaction in
this proceeding…13
[35] The Senior Member noted that it was difficult to assess the relative merits of the
claims of the parties at that time.
[36] An arborist was appointed by the Tribunal to provide a report. The arborist did so on
27 May 2017. The arborist concluded that the trees ‘did not start or greatly contribute
to the retaining wall failure’.14
[37] The matter was listed for a conclave of the engineering experts.
[38] The engineering experts prepared a joint report on 22 June 2017. It was of little value
in determining the issue of the contribution of tree roots to the failure of the retaining
wall. The conclusion of the arborist was noted by the engineers. However, the
engineers said they could not determine accurately the exact cause of failure of the
retaining wall. They could only speculate as to the amount of force being transmitted
from tree roots. The experts agreed that each had encountered failed retaining walls
caused by the close proximity of trees or tree roots.15
[39] The matter of expert engineering evidence was addressed yet again in a directions
hearing on 7 December 2017. The parties noted the inconclusive findings of the
structural engineers. They both referred to additional geotechnical engineering
evidence intended to be obtained. Evidently, that was at the suggestion of the
structural engineers.16 The parties were directed to file in the Tribunal any additional
geotechnical engineering reports and the geotechnical experts were directed to attend
a conclave.
[40] At a further directions hearing on 24 May 2018, amongst other things, the parties were
directed to file a list of issues that each party suggested should be considered by the
geotechnical engineers in conclave. Both parties filed separate lists.17 Significantly,
neither party suggested that one of the issues to be addressed was to determine whether
13 Transcript 6.4.17 Page 1-8 Lines 30-35.
14 Joint Report of the Experts, 14.
15 Expert Engineers’ Conclave Report of 22 June 2017, [34]-[35].
16 Transcript 7.12 2017 Page 1-13 Line 40.
17 Appellants’ Appeal Book, 59 – 62.
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or not the failure of the retaining wall was attributable to the appellants’ trees or tree
roots.
[41] The geotechnical experts attended the conclave and provided a joint report on 8
August 2018. Their conclusion in relation to trees was limited to the following:
The experts agree that the trees have weight and are close enough to apply
surcharge pressure to the wall and also agree that neither expert is qualified to
assess that weight. The experts also agree that the pressure applied to the wall
due to a surcharge is related to the nature of the retained soil, but the experts
were unable to agree what the nature of that soil was and what the pressure
would be.18
[42] On 31 May 2018, the respondents filed the separate minor civil dispute – dividing
fence application. The applications were consolidated and came on for hearing on 5
September 2018. As noted at [5] above, the dividing fence application was dismissed.
As is also noted at [5] above, the learned Member raised the question of the extent to
which the trees contributed to the problem with the retaining wall and, in turn, whether
the Tribunal had jurisdiction. The learned Member made it clear that if the evidence
supported a conclusion that it was the boulders, the pool or the landscaping that had
caused the retaining wall to fail rather than trees, the Tribunal would lack jurisdiction
to make the orders sought by the respondents.19
[43] After a short adjournment, the respondents decided to withdraw the tree dispute
application, stating:
Well, we thought about it long and hard and – and our view is we really need to
pursue the – the option that addresses the entire issue, rather than piecemeal
issues. So – and although we’ve still got some outstanding things, like the
overhanging branches, I feel like we don’t have any other option but to withdraw
at this point in time.20
[44] There were some orders made by consent about pruning the trees overhanging the
common boundary.
[45] The respondents filed a notice of withdrawal of the application for tree dispute one
week after the hearing.
Discussion in relation to costs
[46] By 27 May 2017, the date of the arborist’s report, it should have been clear to the
respondents that their application for relief on the basis of the tree dispute was fraught
with difficulties and that the application to the Tribunal had doubtful prospects of
success. The arborist’s report concluded that the trees ‘did not start or greatly
contribute to the failure of the retaining wall’.21
18 Joint Report of the Experts, 3.
19 Transcript 5.9.18 Page 1-25 Lines 13 – 27; Page 1-41 Lines 33-38; page 1-42 Lines 8-18.
20 Ibid 1-43 Lines 16-20.
21 Arborist’s Report, 14.
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[47] Certainly, when the parties provided their lists of issues to be considered by the
geotechnical engineers in conclave, it is reasonable to conclude that the claim that the
trees were the cause of serious damage to the retaining wall had fallen away from
consideration. Neither party included it as an issue to be addressed.
[48] We conclude that by at least the time of the directions hearing on 24 May 2018, when
the parties were directed to prepare their list of issues to be answered by the
geotechnical experts, it was clear or should have been clear to the respondents that the
application for a tree dispute was misconceived.
[49] At least by then, they ought to have known that they had no real prospects of success
in the application and it should not be further pursued. Persistence by them was
unreasonable. The issue of the limited jurisdiction of the Tribunal in respect of the
retaining wall had been brought to their attention in directions hearings on more than
one occasion. Despite that they continued. They have put the appellants to
unnecessary expense.
[50] The reason given by the respondents for the belated withdrawal of the tree dispute at
the hearing, that they now wished all issues to be determined “holistically”,22 should
have been self-evident at an earlier time. They knew or ought to have known by at
least 24 May 2018 that the Tribunal was not the proper forum for the dispute.
[51] The appellants are entitled to their costs from 24 May 2018. The appropriate basis of
award is on an indemnity basis. In Petavrakis White J said:23
In the ordinary case the court orders the costs of one party to litigation to be
paid by another on the standard (previously party and party) basis. In Fountain
Selected Meats (Sales) Pty Ltd v International Produce Merchants Pty Ltd
[1988] FCA 202; (1988) 81 ALR 397, Woodward J said at 401:
"I believe that it is appropriate to consider awarding `solicitor and client'
or `indemnity' costs, whenever it appears that an action has been
commenced or continued in circumstances where the applicant, properly
advised, should have known that he had no chance of success. In such
cases the action must be presumed to have been commenced or continued
for some ulterior motive, or because of some wilful disregard of the
known facts or the clearly established law. Such cases are, fortunately,
rare. But when they occur, the court will need to consider how it should
exercise its unfettered discretion."
Those remarks have been cited with approval in a number of cases including by
French J in Tetijo Holdings Pty Ltd v Keeprite Australia Pty Ltd (unreported
decision of 3 May 1991) and Sheppard J in Colgate Palmolive v Cussons Pty
Ltd [1993] FCA 536; (1993) 118 ALR 248.
In J-Corp Pty Ltd v Australian Builders Labourers Federation Union of
Workers - Western Australian Branch (unreported decision of 19 February
1993) French J referred at p 5 to Fountain Meats and his earlier decision in
Tetijo and said
22 Application for Miscellaneous Matters filed 13 June 2018 [C2]
23 [2001] QSC 224, [43]-[44].
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"Although there is said to be a presumption in such cases [Fountain] that
the action was commenced or continued for some ulterior motive or in
wilful disregard of known facts or clearly established law, it is not a
necessary condition of the power to award such costs that a collateral
purpose or some species of fraud be established. It is sufficient, in my
opinion, to enliven the discretion to award such costs that, for whatever
reason, a party persists in what should on proper consideration be seen to
be a hopeless case."
[52] Those comments are apposite here. The conduct of the respondents in continuing the
tree dispute after 24 May 2018, to repeat the words of Wilson J in Ralacom, ‘point so
compellingly to a costs award that they overcome the strong contra-indication against
costs orders in s 100’ of the QCAT Act. Further, the continuation of the proceedings
in circumstances of the repeated warnings at directions hearings that the Tribunal
lacked general jurisdiction in respect of retaining walls requires more than an award
of costs on the standard basis.
[53] The appellants consistently maintained that the proceedings were misconceived.
There is no conduct on their part that precipitated litigation in the Tribunal. There is
no conduct on their part that should disentitle them to their costs. The consent orders
made at the hearing of 5 September 2018 in relation to the lopping of branches are not
interlocutory orders favouring the respondents. Overhanging branches were never a
significant issue or claim for relief.
Assessing costs
[54] The appellants claim indemnity costs of $32,887 for the entire conduct of the matter.
The appropriate order is indemnity costs from the date when it was clear there was no
serious pursuit by the respondents of the claim that the tree roots were a significant
cause of the damage to the retaining wall. We have concluded that should be taken
from the time of the directions hearing on 24 May 2018.
[55] The costs attributable to that period are as follows:
Sterling Law Invoice 29 August 2018 $ 715
Interlara (Engineer) Invoice 6 September 2018 $ 1,782
Douglas Partners (Geotechnical) Invoice 7 September 2018 $11,569.25
Total $14,066.25
Fresh evidence
[56] The respondents filed an application to adduce fresh evidence at the appeal. That
application was refused on the basis that there was no relevant fresh evidence sought
to be adduced. The material contained a reiteration of the prior general assertions by
the respondents, together with a copy of a Supreme Court application filed 15 August
2019. Neither the reiteration nor the Supreme Court application are relevant to the
application for leave to appeal the order made below on costs.
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[57] The only relevance of the Supreme Court proceedings is to draw attention to the fact
that leave to withdraw is not required in the Tribunal where it may be in courts under
the UCPR and under previous iterations of the rules. Where leave to withdraw or
discontinue is required that leave may be conditioned so as to ensure no injustice or
prejudice is done to the other party by requiring the party discontinuing or
withdrawing to pay the costs of the discontinued proceedings and in some
circumstances to give security for costs before commencing the new.24
Orders
[58] The appropriate orders are as follows. Leave to appeal is granted and the appeal
allowed. The order made below that each party bear their own costs is set aside. In
lieu thereof the respondents are ordered to pay costs on an indemnity basis to the
appellants fixed in the amount of $14,066.25 plus costs of the appeal limited to the
application fee of $676.40.
24 Sharpe v Wren [1917] St R Qd 817; Lominoga v Lominoga [1930] QWN 12; Richards v Richards
[1933] QWN 12; Orr v Orr [1949] QWN 5
-- 13 of 13 --
Official source: https://www.sclqld.org.au/caselaw/QCATA/2019/166