Carey v Cairns Regional Council and Ors (No 2) [2011] QCAT 372
CITATION: Carey v Cairns Regional Council and Ors (No 2)
[2011] QCAT 372
PARTIES: David George Carey
(Complainant)
v
Cairns Regional Council
(First Respondent)
David Egan
(Second Respondent)
George Pitt
(Third Respondent)
William Bellero
(Fourth Respondent)
Joseph Sciacca
(Fifth Respondent)
APPLICATION NUMBER: APL104-11 ADC032-09
MATTER TYPE: Anti-discrimination matters
HEARING DATE: On the papers
HEARD AT: Brisbane
DECISION OF: P Roney SC, Member
DELIVERED ON: 20 July 2011
DELIVERED AT: Brisbane
ORDERS MADE: The First Respondent shall pay the
Applicant's costs of and incidental to the
proceeding on the standard basis on the
District Court Scale applicable to the amount
recovered here, as agreed or, failing
agreement, to be assessed.
The Applicant's costs will be assessed as
follows:
(a) The Applicant will deliver to the First
Respondent an itemised claim for costs
referenced to the relevant items contained in
the Scale; and
(b) If within 14 days of that delivery, the
parties have not agreed to an amount for
costs, the costs shall be assessed by a Legal
Costs’ Assessor to be agreed by the parties,
or failing agreement, by a person appointed
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by this Tribunal. For the purposes of that
nomination, the parties shall have liberty to
apply to nominate a person whom that party
submits ought be appointed.
The First Respondent will pay the Applicant's
costs (as agreed or assessed) within 14 days
of such agreement or assessment.
CATCHWORDS: PROCEDURE – COSTS – DISCRETION TO
AWARD COSTS in anti-discrimination matters to
a successful Applicant – whether prima facie
position in s 100 should be displaced and costs
ordered against unsuccessful respondent
applicant pursuant to s 102(3)
Queensland Civil and Administrative Tribunal Act
2009, ss 100, 102(3)
APPEARANCES and REPRESENTATION (if any):
APPLICANT: Mr J Henry, Senior Counsel, instructed by
Wettenhall Silva Solicitors
RESPONDENT: Mr R Perry, Senior Counsel, instructed by
Thynne & McCartney
REASONS FOR DECISION
INDEX ......................................................................................................... Page
Introduction ..........................................................................................................2
The current statutory position – ss 100 and 102 of the QCAT Act .......................4
The former position in anti-discrimination cases ..................................................9
Are human rights cases in a special class? .......................................................12
The financial position of the parties in human rights proceedings ......................14
The complexity of the dispute.............................................................................14
Offers made .......................................................................................................15
Conclusion .........................................................................................................16
Introduction
[1] This is a contest about who should pay the costs in a case in which there
was a partially successful claim that a Complainant has been subjected to
political discrimination. It is the first time that the Tribunal has had to
consider the application of the relevant principles that apply to awards of
costs in concluded anti-discrimination matters, or in the Human Rights
division of the Tribunal. After a four day hearing of this complaint of
discrimination on the grounds of political belief or activity, on 21 January
2011 I found in favour of the Complainant against the First Respondent and
ordered that it pay the Complainant compensation in the amount of
$368,033.06. Two thirds of this award comprised compensation for
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economic loss for the period of approximately two and a half years from the
date of his unlawful dismissal by the First Respondent until judgment.
I dismissed the claims against the balance of the Respondents because, in
effect, they were given statutory immunity from the consequences of their
conduct.
[2] As I noted in my reasons, in the Complainant’s final submissions, he had
sought to be awarded his costs of the proceeding on the District Court
Scale. I did not determine that application then, primarily because the
Complainant’s submissions did not specifically address the matters that I
would be required to consider under ss 100 and 102(3) of the QCAT Act,
but also because by the time I delivered my reasons the Respondents had
not delivered submissions on this issue. Since then all parties have
delivered detailed written submissions on the costs issue. I have given
careful consideration to all the matters set out in those submissions.
[3] In written submissions filed with the Tribunal, the Complainant seeks an
order that the First Respondent pay his costs, either in an amount identified
in an affidavit from the solicitor for the Complainant, or alternatively in an
amount to be agreed or assessed on the District Court Scale. For the
Complainant is contended that there ought not be any order against him in
favour of the successful Second to Fifth Respondents. I shall refer to them
as the Councillors. For the First Respondent is contended that there
should be no order that it pay the Complainant’s costs, having regard to the
principles to be derived from ss 100 and 102 of the Act because:
(a) the First Respondent’s defence was reasonable in circumstances in
which it is contended that the Complainant’s case was based upon
circumstantial, not direct evidence;
(b) each of the Respondents was jointly represented and they acted
reasonably in what is described as a “practical defence” in that they
might instead have sought to be separately represented; having regard
to in the nature and complexity of the matter and the quantum of the
contended losses;
(c) the Applicant’s claims had varied from an initial claim in excess of
$2.5M, to in excess of $800,000.00 by the time of final submissions,
and that these were unreasonable claims and said to be unsustainable
in light of the award which I made.
[4] Otherwise, the Councillors contended that the Complainant ought pay their
costs on the basis that their inclusion in the proceeding was unreasonable,
that they were unnecessary parties and, in effect, that their case for the
avoidance of liability was always strong, particularly having regard to the
provisions of the Local Government Act which, it had been contended that
the Respondents, meant that they did not attract liability under the Anti-
Discrimination Act for the consequences of their conduct insofar as they
procured the relevant council to cause the dismissal of the Complainant
from his position of employment in circumstances set out in my reasons.
[5] I pause to mention that in the Councillors’ submissions in relation to costs,
one of the issues raised is concerned with what is described as the
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“relative strength” of the their case, and the submission is made in that
context that it is a relevant factor that the passing of the resolution by the
relevant local council, (ostensibly through the actions of the Councillors)
was authorised by the Local Government Act, and that there was a specific
finding that they had not acted dishonestly or negligently in their actions.
The finding made to that effect was of course concerned with a
consideration of the express terms of s 240 of the Local Government Act
and which required me to consider whether the exclusion of protection for
councillors’ conduct under that Act applied because councillors acted
“dishonestly or negligently” within the meaning of those terms in s 240. It
would be erroneous to suggest that the findings which were made by me
implied that the Second to Fifth Respondents acted fairly, lawfully or
appropriately. The fact is that the liability upheld against the First
Respondent for the dismissal of the Complainant’s employment arose
specifically and entirely because the dismissal was procured by
discriminatory conduct of the Second to Fifth Respondents. As mentioned
in my reasons, that termination was seen by the Councillors as an
appropriate course in circumstances in which it was an act of political
retribution on the basis of political belief or activity, either his, or someone
else’s with whom he was associated. The relevant local authority
contravened the prohibitions in the Anti-Discrimination Act upon
discrimination on the grounds of political belief or activity. The Councillors
themselves escaped liability for their own actions in procuring that result
because of express statutory protections given to them in their capacity as
local Councillors.
[6] I do not accept that it was inappropriate for the Councillors to be joined to
the proceeding, particularly having regard to the fact that amongst the relief
that was sought from them was an apology. It would have been pointless
to have sought such an apology from the First Respondent, it having
inherited the liabilities of the Douglas Shire Council, and itself having done
nothing warranting an apology. It was fairly arguable that the conduct of
the Councillors fell outside of the protections provided in s 240 of the Local
Government Act 2009. I reject the submission that the Local Government
Act provisions in this context demonstrably excluded liability for the
Councillors’ conduct and that the Applicant could have relied on the same
contentions in the proceeding without joining the Councillors. The
evidence may well have elicited evidence of dishonestly or negligence. In
the end, it did not go that far; as explained in my reasons.
The current statutory position – ss 100 and 102 of the QCAT Act
[7] The statutory position is that set out in ss 100 and 102 of the QCAT Act.
They provide as follows:
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
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(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.
[8] In Ralacom Pty Ltd v Body Corporate for Paradise Island Apartments (No
2) [2010] QCAT 412 the President Justice Wilson was considering the
costs question where the proceeding had been commenced when a
different statutory costs regime applied, but concluded under the QCAT
Act. He said:
21. The respondent relies on the decision of the Court of Appeal in
Tamawood Ltd & Anor v Paans [2005] QCA 111, a case decided
under the costs provision of the now repealed Commercial and
Consumer Tribunal Act 2003 (CCT Act). Although those provisions
are not analogous to the equivalent provisions under the QCAT Act,
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.
22. In Tamawood, Ms Paans commenced proceedings in the CCT for
damages against Tamawood Ltd and another party. The two matters
were heard together and Ms Paans was awarded monetary damages.
The CCT, however, refused to order costs in her favour.
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23. All parties then sought leave to appeal to the District Court, where
the appeals from the respondents were refused, but Ms Paans was
awarded her costs in the proceedings. The respondents then sought
leave to appeal that costs decision to the Court of Appeal, contending
that the decision of the District Court was based on an erroneous
construction of ss 70 and 71 of the CCT Act. Those provisions state:
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.
71 Costs
…
(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.
24. The similar QCAT Act provision to s 70 is, it might be said, in
terms that more plainly indicate that the legislature had turned its face
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against awards of costs in this Tribunal: s 100 says that „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‟.
25. In considering ss 70 and 71 Keane JA (as his Honour then was)
referred, however, to two matters relevant here. First, his Honour held
that the CCT provisions negated the traditional proposition that costs
should prima facie follow the event (unless of course that the Tribunal
considers that another order is more appropriate) and that the nature
and extent of the power to award costs could only be discerned by
close consideration of the terms of the statute which created and
prescribed the occasions and conditions for its exercise 7. Sections
100 and 102 of the QCAT Act attract the operation of the same
principles.
26. Second, Keane JA was of the view 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.
27. That conclusion must, here, be considered in the light of the
difference between s 70 of the CCT Act and s 100 of the QCAT Act.
Section 70 speaks of a „main purpose‟, but s 100 mandates that
parties shall bear their own costs. Section 70 contains, within itself, a
reference to the condition or circumstance in which the main purpose
may be subsumed to the interests of justice; s 100 has no such
proviso, although it appears later, in s 102(1).
28. 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 Act including, in particular for present purposes, the
nature and complexity of the dispute and the relative strength of each
party‟s claims.
29. 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.
30. I am satisfied that is the case here. As the voluminous supporting
material indicated, the application brought in Ralacom‟s name
involved a complex history of disputes between it, and the body
corporate. Urgent injunctive relief was sought, as was relief under the
BCCMA, which on any view involved some complexity, and urgency,
and warranted the instruction of solicitors and counsel by the body
corporate. The standing of the company was unclear, and confused
by the applicant‟s failure to inform this Tribunal about the real outcome
of the Supreme Court Proceedings.
[9] Later, in McEwen v Barker Builders Pty Ltd [2010] QCATA 49 the
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President, Justice Wilson said in an Appeal heard on the papers:
[13] As to costs, the starting point in this Tribunal is that each party
must bear its own: QCAT Act, s 100. The statutory presumption may
be displaced if the Tribunal considers it in the interests of justice to
order a party to pay all or part of the costs of another party: s 102(1).
The phrase “in the interests of justice” is not defined in the Act but is to
be construed according to its ordinary and plain meaning, conferring a
broad discretionary power on the decision-maker 8.
[14] In determining whether it is in the interests of justice to award
costs against another party, the Tribunal may have regard to the
nature and complexity of the dispute; the relative strengths of the
claims made by each of the parties; and, whether a party has acted in
a way that unnecessarily disadvantages another party: QCAT Act,
s 102(3).
[17] The language of s 100 plainly indicates that the legislature has
turned its face against awards of costs in this Tribunal. The question
that will usually arise in each case in which costs are sought is, then,
whether circumstances relevant to the discretion inherent in the
phrase „the interests of justice‟ have arisen; and, whether or not they
point to a costs award in a sufficiently compelling way to overcome the
statutory hurdle.
[10] Queensland is not the only jurisdiction that has provisions that apply to
claims of discriminatory conduct that establish as the starting point that
parties bear their own costs. For example section 109 of the Victorian Civil
and Administrative Tribunal Act 1998 provides, in terms not unlike those in
ss 70 and 71 of the former CCT Act, now repealed, provides as follows:
“Power to award costs
109. Power to award costs
(1) Subject to this Division, each party is to bear their own costs in the
proceeding.
(2) At any time, the Tribunal may order that a party pay all or a
specified part of the costs of another party in a proceeding.
(3) The Tribunal may make an order under subsection (2) only if
satisfied that it is fair to do so, having regard to-
(a) whether a party has conducted the proceeding in a way that
unnecessarily disadvantaged another party to the proceeding by
conduct such as-
(i) failing to comply with an order or direction of the Tribunal without
reasonable excuse;
(ii) failing to comply with this Act, the regulations, the rules or an
enabling enactment;
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(iii) asking for an adjournment as a result of (i) or (ii);
(iv) causing an adjournment;
(v) attempting to deceive another party or the Tribunal;
(vi) vexatiously conducting the proceeding;
(b) whether a party has been responsible for prolonging
unreasonably the time taken to complete the proceeding;
(c) the relative strengths of the claims made by each of the parties,
including whether a party has made a claim that has no tenable basis
in fact or law;
(d) the nature and complexity of the proceeding;
(e) any other matter the Tribunal considers relevant.”
[11] This provision has been applied in the VCAT to allow successful parties to
recover their costs in some of the matters which have a “commercial
flavour”, for example the Retail Leases list, or the Civil Claims List. In
Sherman v Watson (Costs) [2004] VCAT 109 Judge Bowman awarded
costs on an applicable scale against an unsuccessful Applicant, saying at
[13] “In relation to costs generally, I indicated that, after hearing argument, I
was minded to order costs. I allowed the parties the opportunity to make
written submissions. Nothing in the written submissions has persuaded me
that costs should not be ordered. This proceeding was conducted in a very
litigious fashion. It was commercial litigation. It was complex, involving
issues of fact and law.” See also Toonalook Straights Pty Ltd v Jeuken-
Sims (costs) [2004] VCAT 550.
[12] The case before me was certainly conducted in a very litigious fashion, and
although not a case carrying a commercial flavour, the dismissal of the
Complainant from his position with the Council was a pre-meditated
political decision likely to have significant consequences, including financial
consequences for the Complainant.
[13] I respectfully agree with the approach that the President has taken in
Ralacom and the McEwen decisions. That means that the relevant task is
to proceed on the basis that there is a statutory presumption that parties
will bear their own costs in a proceeding for the Tribunal, including those in
the Human Rights jurisdiction of the Tribunal but that presumption may be
displaced if the Tribunal considers it in the interests of justice to order a
party to pay some or all of the costs of another.
The former position in anti-discrimination cases
[14] The jurisdiction under the Anti-Discrimination Act was from 1992, until 2009
vested in the Qld Anti-Discrimination Tribunal (QADT). That Tribunal was
abolished effective from 1 December 2009. Until then, the QADT typically
made costs orders in favour of successful applicants by applying the rule
that costs follow the event. It was required to apply the provisions of s 213
of the Anti-Discrimination Act 1991 which then provided that:
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“(1) The Tribunal may order a party to pay such costs as the Tribunal
considers reasonable.
(2) However, costs must be assessed using the scale of costs for the
District Court under the Uniform Civil Procedure Rules 1999 unless
the Tribunal is satisfied that, because of the complexity of the matter,
or because of another reason, costs should be assessed using a
higher scale.
(3) In deciding whether to order a party to pay costs, the Tribunal may
have regard to—
(a) the reasons for the enactment of this Act as stated in the preamble,
and whether these reasons would be compromised or defeated in
ordering the party to pay costs; and
(b) the fairness of a costs order, having regard to the following—
(i) whether a party has conducted the proceeding in a way that
unnecessarily disadvantaged another party to the proceeding,
including, for example, by—
(A) failing to comply with an order or direction of the Tribunal without
reasonable excuse; or
(B) failing to comply with this Act; or
(C) asking for an adjournment as a result of subparagraph (A) or (B);
or
(D) causing an adjournment; or
(E) attempting to deceive another party or the Tribunal; or
(F) vexatiously conducting the proceeding;
(ii) whether a party has been responsible for prolonging unreasonably
the time taken to complete the proceeding;
(iii) the relative strengths of the claims made by each of the parties;
(iv) whether a party reasonably believed there had been a
contravention of this Act;
(v) the nature and complexity of the proceeding;
(vi) any other matter the Tribunal considers relevant.
(4) Subsection (3) does not limit subsection (1).
[15] As to the issues identified in the former s 231(3)(a) of the Act, the reasons
for Parliament’s enactment of the Anti-Discrimination Act as stated in the
preamble to the Act are, interalia that:
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“1 The international community has long recognised the need to
protect and preserve the principles of dignity and equality for everyone
....
5. The Parliament is satisfied that there is a need-
(a) to extend the Commonwealth legislation; and
(b) to apply anti-discrimination law consistently throughout the State;
and
(c) to ensure that determinations of unlawful conduct are enforceable
in the courts of law.
6. The Parliament considers that-
(a) everyone should be equal before and under the law and have the
right to equal protection and equal benefit of the law without
discrimination; and
(b) the protection of fragile freedoms is best effected by legislation that
reflects the aspirations and needs of contemporary society; and
(c) the quality of democratic life is improved by an educated
community appreciative and respectful of the dignity and worth of
everyone.
7. It is, therefore, the intention of the Parliament to make provision, by
the special measures enacted by the Act, for the promotion of equality
of opportunity for everyone by protecting them from unfair
discrimination in certain areas of activity and from sexual harassment
and certain associated objectionable conduct.”
[16] When the subject complaint was made in December 2008, s 213 was in
force. Numerous decisions of the Anti-Discrimination Tribunal treated the
former s 213 as authorising orders for costs that followed the event, insofar
as successful complainants were concerned. On some occasions they
were treated as authorising the refusal of an order for costs in favour of a
successful Respondent because of the public interest factors present. For
example, in Harris and Pyne v Transit Australia Pty Ltd [2000] QADT 6
Member Coates held in a case where the Complainant had failed:
“233. The legislation of the Anti-Discrimination Commission of
Queensland is by its nature to promote equality of opportunity for
everyone by protecting them from unfair discrimination in certain areas
of activity and from sexual harassment and certain associated
objectionable conduct.
234. It is not necessarily that costs follow the event and there is an
absence of specific statutory provisions under the Act which provide
for the costs to follow the event. This is a matter which of course
involves a wide public interest. The nature of the legislation under
which the section to award costs involves a broad public interest and
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this is an area, namely public transport, which is a very broad public
interest.
235. I am not persuaded that the offer made by the Respondent
during the course of the proceedings, and not accepted by the
complainant would persuade me to be a matter of significance to
outweigh the broader public interest of this area”.
[17] In considering the issues identified in the former s 231(3)(a) of the Act,
Member Forrest, as he then was in Lafferty v Zimmer, Brailsford and
University of Queensland (No. 2) [2007] QADT 14 upheld an argument
refusing a successful Respondent its costs, after considering the reasons
for Parliament’s enactment of the Act, on the basis at [23] that “the
complainant believed on reasonable, albeit mistaken, grounds that he had
not been offered continuing employment for reasons that were prohibited
under the Act. Former Member Mullins clearly held the view that the
complainant therefore reasonably believed he had a good case under the
Act. The other, non-discriminatory explanation, the former member found,
only became clear once all the evidence had been given in the matter.
Significantly, the complainant was found to be a “credible and impressive
witness”.
[18] Similar conclusions were reached concerning unsuccessful applicants in
Victoria in the anti-discrimination context in Gonsalves v MAS National
Apprenticeship Services Costs (Anti Discrimination) [2007] VCAT 6.
Are human rights cases in a special class?
[19] One of the submissions made on behalf of the Applicant is that the fact that
the Tribunal is seized of matters arising under the Anti-Discrimination Act is
relevant to a consideration of the way in which the matters set out in s 102
of the Act are to be applied in such cases. It is submitted that cases under
the Anti-Discrimination Act form a special class of cases because they
involve claims or applications relating to fundamental human rights. In that
context, it is submitted that s 102 should be construed “beneficially” and in
a manner which gives effect to the objects and purposes of the Anti-
Discrimination Act, and in particular those set out in s 6 to “promote
equality of opportunity for everyone by protecting them from unfair
discrimination in certain areas of activity, including work”.
[20] That such claims are in a special class which give rise to different
considerations when questions of costs arise, has been recognised
previously in the State in decisions of the Anti-Discrimination Tribunal. A
couple of examples have already been given and are mentioned earlier in
these reasons. Typically this consideration has been applied to deny to a
successful respondent orders for the recovery of costs against an
unsuccessful complainant.
[21] Applications for judicial review of decisions made under the
Commonwealth Human Rights and Equal Opportunity Commission Act
1986 go before the Federal Magistrates Court and the Federal Court. In
such cases, the court has a general discretionary power to award costs in
all proceedings. There is no assumption of the kind contemplated by s 100
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of the QCAT Act. Nevertheless, there have been comments in those
jurisdictions which have suggested that it is relevant to the consideration of
what costs orders are made that these cases involve considerations
concerned with human rights protected by a statute, where there is a public
interest element to the complaint, or where in those circumstances a
successful party might lose the benefit of their victory because of the legal
costs involved in the case. For example in Paramasivam v Wheeler [2000]
FCA 1559 at pars [9] and [10], Moore J suggested that special
considerations might apply to the issue of costs in the Federal jurisdiction
involving unlawful discrimination claims by nature of the jurisdiction. That
was a case of an unsuccessful applicant. Although his Honour decided
that a costs order would be made in that case he invited the parties for
whose benefit the order had been made to give consideration as to
whether any of those costs ought be recovered.
[22] The Full Court of the Federal Court in Hagan v Trustees of the Toowoomba
Sports Ground Trust (2000) 105 FCR 56 was concerned with an argument
by the appellant that costs should not be awarded against him as he was
not receiving Legal Aid, and that the proceedings concerned a public rather
than a private right. It concerned the controversial naming of a grandstand
at a Toowoomba football ground as the “Nigger Brown” stand. The Full
Court said “this is not an appropriate case in which to consider whether
there should be some departure in human rights litigation from the ordinary
principles governing the court‟s discretion to order payment of costs. In our
view, this appeal should be dismissed with costs because the appeal was
without merit, having no realistic prospects of success”. On the other hand,
in a number of Federal Court decisions the court has made statements
which appear to suggest that costs would generally be ordered in favour of
the successful party in discrimination matters; for example Tate v Rafin
[2000] FCA 1582 and Creek v Cairns Post Pty Ltd [2001] FCA 1150.
[23] There have also been a number of decisions in the Federal Magistrates
Court which have had regard to the fact that there was a public interest in
the subject matter of the proceedings as relevant to the exercise of
discretion to award costs. Examples include Xiros v Fortis Life Assurance
Ltd (2001) 162 FLR 433, Ferneley v The Boxing Authority of New South
Wales (2001) 115 FCR 306 at 326 and Minns v New South Wales (No. 2)
[2002] FMCA 197.
[24] There appear to have been no decisions in which those principles have
been applied relevantly to a consideration of where the interests of justice
lie in the context contemplated by s 102 of the QCAT Act. It seems to me
however that there is no reason in principle why in an appropriate case, the
fact that a complaint upheld involved legislation designed to protect human
rights would not be a relevant consideration under s 102, falling within the
broad category contemplated by s 102(3)(b) or by s 102(3)(f) as something
else that the Tribunal considered relevant to whether the interests of justice
require a costs order to be made. In saying that, I should not be construed
as holding that every case brought in the Human Rights Division of this
Tribunal would attract that consideration. Not all have the same public
interest factors present.
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The financial position of the parties in human rights proceedings
[25] As a corollary to this approach there is some authority for the proposition
that in relation to the issue of costs in human rights proceedings, where an
applicant is successful, it is regarded as desirable that there be an award of
costs in favour of the successful applicant, so as to avoid an award of
damages being swallowed up by the costs of litigation; Johanson v
Blackledge (2001) 163 FLR 58, Cooke v Plauen Holdings Pty Limited
[2001] FMCA 91 and Escobar v Rainbow Printing Pty Limited (No. 3)
[2002] FMCA 60. In Whitlock v Bunnings, DP and DF [2009] QADT 14, the
then President of the Tribunal, Mr Savage SC said, in this context:
“The rights given under the Act to people in Ms Whitlock‟s position as
an ordinary member of our community becomes theoretical, if they
cannot obtain a vindication of those rights other than by risking what
on any view must be a goodly portion of an ordinary person‟s available
assets.”
[26] According to the sworn evidence of the solicitor for the Complainant, the
Complainant has incurred legal costs up to the date of delivery of the
Tribunal’s decision in an amount of $136,226. Were the Complainant to
meet his own costs of the proceeding, clearly that would substantially
diminish the sum which would be available to him by way of compensation
for the unlawful conduct of the local Council. Even based on the
application of the District Court Scale set out in schedule 2 of the Uniform
Civil Procedure Rules 1999, the amount which he is likely to recover,
assuming the calculation by the solicitor for the Complainant to be correct,
is approximately $84,500. In those circumstances, the Complainant would
be out of pocket in respect of his real costs by approximately $52,000.
[27] One of the considerations which I am bound to take into account under
s 102(3)(e) of the QCAT Act are the financial circumstances of the parties
to the proceedings. The Complainant has incurred what, on any view of
the matter, is very considerable expense in pursuing his rights in
consequence of unlawful conduct perpetrated upon him. That can in no
way said to have been consequential upon any behaviour on his part which
might be the subject of criticism. In that sense, the incurring of such
expense was “reasonably necessary to achieve a satisfactory outcome” in
the sense referenced by Justice Keane in the earlier referred decision in
Tamawood. There is evidence, which I mention in my reasons, that the
loss of his employment caused financial hardship which had in turn led to
economic loss which was the subject of claims partially upheld. There is
no suggestion that the First Respondent Council, a substantial local
authority funded by rate payers, is not in a position to meet any costs order
which might be made, or that there are any other relevant financial
circumstances concerning the First Respondent which I ought take into
account.
The complexity of the dispute
[28] The dispute in question was of considerable complexity, both in terms of
the factual issues which arose for consideration but also as to the legal
issues which it presented. Both sets of parties thought it appropriate to
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engage Senior Counsel to represent them, implying that they too regarded
the issues as of some complexity. The affidavit material filed for each side
was voluminous. In addition to that material there was a considerable body
of other documentation which was identified in respective document
bundles which each party handed up at the outset of the hearing. The
scope of the inquiry into the relevant conduct of those concerned went
back to 2006, and factual enquiry involved a number of critical incidents
which occurred in each year from 2006 through to the end of 2010. As I
mentioned in my reasons, the termination of the Complainant’s
employment in March 2008. The factual enquiry did not of course end with
the termination of the Complainant’s employment, particularly having
regard to the case put for the Respondents, which required a consideration
of the many attempts by the Complainant to obtain alternative employment
after his dismissal with the Council.
[29] It appears to be common ground the Complainant’s case was based upon
circumstantial evidence, but my findings upheld that case. The manner in
which the Respondents conducted their own case, in my view, added
unnecessary complexity to the issues which arose for determination, and
apart from an issue of statutory construction arising under the Local
Government Act and upon which the Councillors succeeded, the case put
for all Respondents and which I describe in my reasons was unmeritorious,
and ought have been seen to be unmeritorious long before a hearing was
conducted. I pause to mention that from the outset, when the matter was
the subject of a complaint to the Anti-Discrimination Commission of
Queensland in December 2008, the Respondents were on clear notice as
to the character of the complaint made against them and sought to answer
it from the outset with essentially the same arguments as were ultimately
put at the trial before me. There would have been an attempt at
conciliation of the dispute while it was still in the hands of the Commission
in 2009, but the matter was not resolved there.
Offers made
[30] A relevant consideration, although not one upon which I place any
particular significance is that the parties had made without prejudice offers,
save as to costs, in an attempt to resolve the disputes between them. It is
not possible now to conclude that any offer made on behalf of the
Complainant was for a sum equal to or less than the sum which I have
awarded. I note, however, that the offer that was made in October 2010
and shortly before the hearing was conducted indicated that the
Complainant then would have been prepared to accept a sum of the
$323,349 in respect of all heads of compensation and that in addition he
would have accepted costs in an amount of $70,000. It suffices to mention
that the figure sought by way of compensation was not disproportionately
different from the sum which I have allowed. In contrast, the Respondents
offered at about that time to settle the matter for a payment of only $40,000
plus costs to be assessed. This figure could not realistically have been
described as being “within the ballpark” of sums which might be reasonably
considered to be likely to be recovered by a successful Complainant in this
case, where the major component of the claim was for past economic loss
in excess of $200,000 and in respect of which there was no contest at the
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hearing by the Respondents.
Conclusion
[31] I see nothing in the manner in which the Complainant conducted his case
which suggests that he did not do so in a manner which was just and
sought the expeditious resolution of the real issues which arose. I have
already said that I do not regard the joinder of the Councillors as
inappropriate. In my view, having regard to all of the circumstances, the
Complainant has displaced the statutory presumption in s 100 QCAT Act
that the parties ought bear their own costs. In my view the interests of
justice in this case require that the First Respondent pay the Complainant’s
costs on a standard basis. I do not think it appropriate to seek to fix those
costs, either on the basis of the estimate conducted by the solicitor for the
Complainant, based on scale. The appropriate course is for an
assessment to occur on the basis of the District Court Scale applicable to
matters where the sum recovered is the same as that awarded here by way
of compensation.
[32] I reject the contention put on behalf of the Councillors that the Complainant
ought pay their costs of the proceeding. The case against them only failed
because they were in effect provided with a statutory immunity from the
consequences of their conduct. I do not regard it as significant that the
Applicant argued for an award of compensation which was more than
double the sum which he was ultimately awarded. The amounts claimed
included amounts by way of future economic loss and general
compensation which in substantial respects were at large. There is nothing
to suggest that there were any additional costs incurred by the
Respondents than having to resist those claims. Awards of compensation
were in but made under each of the claimed heads, albeit not in the sums
sought.
[33] The Respondent Councillors were represented by the same firm of
solicitors and the same counsel as represented the unsuccessful First
Respondent. As my reasons make clear, despite having put a positive
case in documents filed with the Tribunal, and having sworn affidavit
material, the Councillors elected not to go into evidence. There is nothing
before me to suggest that the Councillors incurred any legal costs over and
above those which the First Respondent incurred for the same solicitors
and counsel who represented it. In the circumstances, it does not seem to
me to be in the interests of justice that there be a specific costs order in
favour of the Respondent Councillors. If there are any additional costs
which have been incurred by them over and above those incurred by the
First Respondent, then in my view, they are costs which the Councillors
themselves should bear.
[34] In the circumstances I make the following orders:
(a) The First Respondent shall pay the Applicant's costs of and incidental
to the proceeding on the standard basis on the District Court Scale
applicable to the amount recovered here, as agreed or, failing
agreement, to be assessed.
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(b) The Applicant's costs will be assessed as follows:
(c) The Applicant will deliver to the First Respondent an itemised claim for
costs referenced to the relevant items contained in the Scale; and
(d) If within 14 days of that delivery, the parties have not agreed to an
amount for costs, the costs shall be assessed by a Legal Costs’
Assessor to be agreed by the parties, or failing agreement, by a person
appointed by this Tribunal. For the purposes of that nomination, the
parties shall have liberty to apply to nominate a person whom that party
submits ought be appointed.
(e) The First Respondent will pay the Applicant's costs (as agreed or
assessed) within 14 days of such agreement or assessment.
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Official source: https://www.sclqld.org.au/caselaw/QCAT/2011/372