Anghel v Minister for Transport (No 2) [1994] QCA 232 [1995] 2 Qd R 454
IN THE COURT OF APPEAL [1994] QCA 232
SUPREME COURT OF QUEENSLAND Appeal No. 249 of 1994
Before Fitzgerald P.
McPherson JA.
Shepherdson J.
[Minister for Transport v. Anghel]
BETWEEN: SOUTH EAST QUEENSLAND PROGRESS ASSOCIATION
(First Applicant)
AND: GRETA DOROTHEA ANGHEL
(Second Applicant) First Respondent
AND: ANTHONY JAMES BERGLAS
(Third Applicant) Second Respondent
AND: JOHN CRISPIN BOULSOVER
(Fourth Applicant) Third Respondent
AND: TIMOTHY HENRY JEREMY FLORIN
(Fifth Applicant) Fourth Respondent
AND: ALBERT HECTOR NORD
(Sixth Applicant) Fifth Respondent
AND: JOHN EDGAR NORTON
(Seventh Applicant) Sixth Respondent
AND: JAMES BRODIE PROSS
(Eighth Applicant) Seventh Respondent
AND: ALICE SIMPSON
(Ninth Applicant) Eighth Respondent
AND: NOEL SMITH
(Tenth Applicant) Ninth Respondent
AND: BARBARA FRANCES THORN
(Eleventh Applicant) Tenth Respondent
AND: VERNON JOHN WILLIAMS
(Twelfth Applicant) Eleventh Respondent
AND: MINISTER FOR TRANSPORT AND MINISTER ASSISTING THE
PREMIER ON ECONOMIC AND TRADE DEVELOPMENT
(Respondent) Appellant
REASONS FOR JUDGMENT - FITZGERALD P.
Judgment delivered 28/06/94
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2
The circumstances giving rise to this appeal are set
out in the judgment of McPherson J.A. and need not be
repeated.
I agree with his Honour that the primary judge's power
to award costs was not his general power to do so but the
specific power conferred by section 49 of the Judicial
Review Act 1991. The respondents had made a "costs
application" under subsection 49(1) prior to the appellant's
application to have their application for judicial review
stayed or dismissed under section 48 of the Act, and they
were entitled to have the position with respect to costs
determined in accordance with subsections 49(1) and (2),
which are set out in McPherson J.A.'s reasons for judgment.
As his Honour states, those provisions enable costs
orders more favourable to the respondents than would
ordinarily be appropriate under the general law. I should
add that I consider that subsection 49(1)(d) is wide enough
to permit an order for costs on a solicitor and client
basis, and is not confined to an order for costs "on a party
and party basis". There is no sufficient reason why the
larger power should not include power to make the more
limited order. Further, I agree with McPherson J.A. that an
order for costs made under subsection 49(1)(d) is not
limited to costs incurred after the order with respect to
costs is made but may extend to costs incurred "from the
time the costs application was made." As his Honour points
out, the order under appeal in this matter extended back
beyond that point and, to that extent, was not supported by
that subsection. Subsection 49(1)(e) is not similarly
limited.
As McPherson JA. indicates, it falls to this Court to
exercise afresh discretionary power to make an order with
respect to costs. The Court may refuse to make an order in
favour of the respondents on their costs application, may
take the usual course of making an order against them in
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3
favour of the appellant who was successful in the
proceeding, or may make an order under subsections 49(1)(d)
or (e). Matters to which regard is to be had are set out in
subsection 49(2). It is unnecessary on this occasion to
determine whether those matters are exhaustive or whether
other matters may also be considered.
The financial resources of the appellant far outweigh
those of the respondents (subsection 49(2)(a)) who, speaking
generally, are not well off. Further, the decision in
respect of which they sought judicial review has adversely
affected them financially as well as in other respects. In
such circumstances, it may often be appropriate to make at
least an order under subsection 49(1)(e). Such a course
will be less likely to deter private citizens from
challenging government decisions which affect them, and thus
advance the general intent of the Act that persons aggrieved
should have a practical means of calling such decisions in
question.
On the other hand, such an order might not be justified
for other reasons; for example, if there was no "reasonable
basis for the review application" (subsection 49(2)(c)).
Conversely, the strength of a case for judicial review may
be such that, taken with other circumstances, an applicant
for review should have a costs order under subsection
49(1)(d)although the review application is unsuccessful. In
this matter, the respondents' application for review was
considered by the primary judge to have a reasonable basis
but was, nonetheless, able to be summarily disposed of.
The third factor made relevant by subsection 49(2) is
that referred to in paragraph (b). Many proceedings for
judicial review will involve issues "that ... may affect the
public interest". Thus, in this case, the location of a
rail link to the Port of Brisbane may be considered a matter
of public interest. However, the respondents' review
application was not related to public interest
considerations but, quite legitimately, to the effect of
what was proposed upon their personal interests. While this
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does not disentitle them to an order under subsection 49(1),
it provides little support for a costs order under
subsection 49(1)(d) rather than 49(1)(e).
-- 4 of 28 --
On a consideration of the material factors, McPherson
JA. has concluded that an order under subsection 49(1)(e) is
appropriate. I agree. The project of which the respondents
complain has subjected them to disadvantages in the
interests of the general community. They should not be
further disadvantaged by being required to pay the
government's legal costs of a challenge which the primary
judge considered reasonable.
I agree with the orders proposed by McPherson JA.
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2
IN THE COURT OF APPEAL
SUPREME COURT OF QUEENSLAND
Appeal No. 249 of 1993
Brisbane
Before Fitzgerald P.
McPherson J.A.
Shepherdson J.
[Minister for Transport v. Anghel & Ors.]
BETWEEN
SOUTH EAST QUEENSLAND PROGRESS ASSOCIATION
(First Applicant)
- and -
GRETA DORETHEA ANGHEL
(Second Applicant) First Respondent
- and -
ANTHONY JAMES BERGLAS
(Third Applicant) Second Respondent
- and -
JOHN CRISPIN BOULSOVER
(Fourth Applicant) Third Respondent
- and -
TIMOTHY HENRI JEREMY FLORIN
(Fifth Applicant) Fourth Respondent
- and -
ALBERT HECTOR NORD
(Sixth Applicant) Fifth Respondent
- and -
JOHN EDGAR NORTON
(Seventh Applicant) Sixth Respondent
- and -
JAMES BRODIE PROSS
(Eighth Applicant) Seventh Respondent
- and -
-- 6 of 28 --
3
ALICE SIMPSON
(Ninth Applicant) Eighth Respondent
- and -
NOEL SMITH
(Tenth Applicant) Ninth Respondent
- and -
BARBARA FRANCIS THORN
(Eleventh Applicant) Tenth Respondent
- and -
VERNON JOHN WILLIAMS
(Twelfth Applicant)
Eleventh Respondent
- and -
MINISTER FOR TRANSPORT AND MINISTER
ASSISTING THE PREMIER ON ECONOMIC
AND TRADE DEVELOPMENT
(Respondent) Appellant
REASONS FOR JUDGMENT - McPHERSON J.A.
Judgment delivered the Twenty Eighth day of June 1994
By a letter dated 17 June 1993 addressed to the Chief
Executive Officer of Queensland Rail, the Minister for
Transport gave his approval for the construction of standard
gauge rail link to the Port of Brisbane. The proposed rail
link is planned to follow the route of the existing railway
line to the Port. Residents who live along the route are
apprehensive that it will increase the density of rail
traffic, with consequent detriment to their environment.
Claiming to be aggrieved by the Minister's decision of
17 June 1993, eleven of the residents applied under the
Judicial Review Act 1991 to the Supreme Court for a
statutory order of review in relation to it. They also
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applied for an order under s.49 of the Act that the
Minister, who was the respondent to the original application
for review, indemnify them in relation to costs properly
incurred. The Minister responded by applying for an order
that the application for review be stayed or dismissed. He
claimed that for various reasons there was no prospect that
the application would succeed.
The Minister's application came before a Judge in
Chambers who, after hearing submissions, decided to sustain
it. He ordered that the residents' application for review
be dismissed, and delivered written reasons for that order.
Although his Honour dismissed the application for
judicial review, he ordered the Minister to pay the costs
incurred by the residents both in the original review
application and in the Minister's application to dismiss.
That was on 5 November 1993. Later on 2 December 1993 his
Honour gave the Minister leave to appeal against the order
for costs, delivering written reasons in which he explained
the basis of his earlier order that the Minister pay the
residents' costs.
This is the Minister's appeal against that order for
costs. Leave to appeal against it was sought under s.9 of
the Judicial Review Act and obtained from the Judge who made
the order. However, s.49(5) of the Judicial Review Act
provides that an appeal may be brought from an order under
s.49 only with leave of the Court of Appeal. To the extent
that it is material here, s.49 of the Act provides:
"49.(1) If an application (the "costs
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application") is made to the Court by a person
(the "relevant applicant") who -
(a) has made a review application; or
(b) has been made a party to a review
application under section 28; or
(c) is otherwise a party to a review
application and is not the person
whose decision, conduct, or failure
to make a decision or perform a duty
according to law, is the subject of
the application;
the Court may make an order -
(d) that another party to the review
application indemnify the relevant
applicant in relation to the costs
properly incurred in the review
application by the relevant
applicant, on a party and party
basis, from the time the costs
application was made; or
(c) that a party to the review
application is to bear only that
party's own costs of the proceeding,
regardless of the outcome of the
proceeding.
(2) In considering the costs application, the
Court is to have regard to -
(a) the financial resources of -
(i) the relevant applicant; or
(ii) any person associated with
the relevant applicant who
has an interest in the
outcome of the proceeding;
and
(b) whether the proceeding involves an
issue that affects, or may affect,
the public interest, in addition to
any personal right or interest of
the relevant applicant; and
(c) if the relevant applicant is a
person mentioned in subsection
(1)(a) - whether the proceeding
discloses a reasonable basis for the
review application; and
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(d) if the relevant applicant is a
person mentioned in subsection
(1)(b) or (c) -whether the case in
the review application of the
relevant applicant can be supported
on a reasonable basis.
(3) The Court may, at any time, of its own motion
or on the application of a party, having regard to
-
(a) any conduct of the relevant applicant
(including, if the relevant applicant is the
applicant in the review application, any
failure to prosecute the proceeding with due
diligence); or
(b) any significant change affecting the
matters mentioned in subsection (2);
revoke or vary, or suspend the operation of, an
order made by it under this section.
(4) Subject to this section, the rules of court
made in relation to the awarding of costs apply to
a proceeding arising out of a review application.
(5) An appeal may be brought from an order under
this section only with the leave of the Court of
Appeal."
In his reasons for judgment delivered on 5 November
1993 the learned Judge said that the application "thus far
was reasonable because of the difficult issues of law
involved", and that "for the reasons explained" the
residents should have their costs. Those reasons were
explained earlier in the written judgment, where, in
referring to the residents' application for a costs order
under s.49, his Honour said that the basis of their claims
was that they were ordinary citizens, whose peaceful
occupation of their homes was threatened by a public project
of some magnitude, and that they should be funded in pursuit
of their remedies.
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7
In the further set of written reasons delivered when
granting leave to appeal, the Judge said he was moved to
exercise his discretion as to costs by a combination of
factors, which he went on to summarise. There were three.
Briefly stated, the first was that the residents were likely
to suffer an additional burden of inconvenience beyond that
borne by others for the sake of a project that was being
undertaken in the general community interest. The second
reason was that the application was "obviously sincere and
far from frivolous" : some difficult refinements of law had
been considered on the application before his Honour, and
the residents could not be said to have been irresponsible
in pursuing their application. The third point made by his
Honour was that the matter had been concluded at an early
stage before substantial costs had been run up. The costs
incurred so far were, he said, "relatively miniscule"
compared with the overall expenditure on the rail link
project; but those costs would bear relatively heavily on
the residents, who were already disadvantaged by the rail
link proposal.
In the course of those additional reasons the Judge
also remarked:
"Learned counsel for the minister, who seeks leave
to appeal against the order, thought that the
order for costs may have been made pursuant to
s.49(2)(b) of the Act, but that is not so. It was
not suggested in the judgment that any reliance
was placed upon it and that silence is accurate
because the order was made under my general
discretion and the influence of the above factors
upon it."
He went on to refer to s.49(1)(d) of the Act and to say that
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8
his prior reference to it was nothing more than an
indication of what might be the legislature's view of "the
philosophical basis which underpinned the features relied
upon in exercising my discretion" as to costs.
The general power of the Supreme Court to award costs
in proceedings before it is conferred primarily by O.91 of
The Rules of the Supreme Court. It is a power which, were
it not for the specific provisions of s.49, would no doubt
be exercisable in proceedings under the Judicial Review Act.
However, the plain effect of s.49 is to displace O.91 to
the extent that its provisions are inconsistent with s.49.
Section 49(4) provides that the rules of court in relation
to awarding costs apply to proceedings arising out of review
applications as defined; but the subsection is expressed to
be "subject to this section".
That shows that s.49 is intended to be the dominant
provision. It may be now the only source of power to award
costs in proceedings arising out of review applications.
Here, however, his Honour appears to have considered that he
was exercising the general power and discretion of the Court
under O.91 to award costs, rather than the power conferred
by s.49 which is what the residents' application for costs
evidently envisaged. On appeal it was submitted on behalf
of the appellant Minister that if the order for costs in
this case was made in the exercise of the Court's general
power and discretion to award costs, then it was wrong and
should be set aside.
The established rule of practice is that a successful
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9
defendant, or a party occupying the position of a defendant,
may not be ordered to pay the general costs of proceedings
in which that party was successful. See No. 1 North Phoenix
Gold Mining Co. v. Phoenix Gold Mining Co. (1896) 6 Q.L.J.
1, 310. The position may now be different in England, where
the power to award costs has since 1925 been the subject of
a differently formulated provision. See Knight v. Clifton
[1971] Ch.700, 700-709. However, the force of the rule and
the reason for it, as well as the earlier English decisions
on which it is founded, were recognised by the High Court in
Hally v. Dennis (1955) 95 C.L.R. 661, 663-664. If,
therefore, in making the order with respect to costs now
under appeal, his Honour was exercising the general power of
the Court under O.91, the order for costs made against the
Minister in this case infringed the rule against ordering a
successful defendant to pay costs.
The correct view is that the power of awarding costs in
a matter like this is the power specifically conferred by
s.49 rather than the general power invested by O.91. The
words "another party" in s.49(1)(d) are plainly capable of
including the respondent to a review application; indeed, in
many cases the respondent will probably be the only other
party to the application. The result is that, because by
s.49(4) the rules of court are made subject to s.49, the
rule preventing an award of costs against a successful
defendant or a party in the position of a defendant is
displaced in the case of a proceeding arising out of a
review application. The only express restriction is imposed
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by the concluding words of s.49(1)(d), which limits the
extent of the indemnity that may be awarded to costs
incurred "from the time the costs application was made".
Subject to that limitation, a successful respondent may
under s.49(1)(d) be ordered to pay the costs properly
incurred by the applicant in the review application. It is
true that the primary purpose of s.49 may be to enable
applicants for statutory review, by making application under
the section at an early stage, to find out in advance
whether they can expect to be indemnified in respect of
costs of proceedings in the future. However, the power
conferred by the section is not in terms so confined, but
under s.49(1)(a) is exercisable whenever a person "has made
a review application". Once that happens the Court may make
an order under s.49(1)(d) that another party indemnify the
applicant for costs properly incurred. If at first sight
the provision has the appearance of being prospective, there
is on closer examination nothing in it to prevent its being
applied ex post facto to cover costs already incurred from
the time the costs application was made.
The Judge was therefore wrong in deciding that in
exercising the general power of the Court under O.91 the
Minister could be ordered to pay the costs, either generally
or without limit as to the time when they were incurred, of
all the residents who were applicants. Under the general
power conferred by O.91, the discretion to award costs ought
not to have been exercised to make a successful defendant
pay the costs of an unsuccessful plaintiff or applicant.
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11
Such an order could have been made in the exercise of the
power conferred by s.49 of the Act, but it would then have
had to be restricted to costs incurred from the time when
the costs application was made. The order for costs made
here was not limited in that way. Furthermore, in
exercising the power conferred by s.49, the Court is
required to have regard to the matters listed in s.49(2) of
the Act. Here his Honour specifically disclaimed reliance
on s.49(2)(b) as a possible basis for his decision, and the
general tenor of his remarks implies he considered that, in
making the order for costs against the Minister, he was not
bound by the provisions of s.49.
It is my belief that, in these respects and for the
reasons mentioned, the Judge's discretion miscarried and
that the order made below must be set aside. It follows, as
was accepted on appeal, that it now falls to this Court to
exercise the discretion afresh. Section 49 of the Act
envisages a costs regime that will lead to results differing
on some occasions widely from those ordinarily made in
exercising the Court's general jurisdiction under O.91.
Making an order for costs against a successful respondent is
an example in point. Mr Allan of counsel for the residents
on appeal candidly acknowledged that he had not located any
reported decision in which such an order had been made in
similar circumstances. He referred to Kent v. Cavanagh
(1973) 1 A.C.T.R. 43, 55, where Fox J. said he thought it
undesirable that responsible citizens with a reasonable
grievance who wish to challenge government action should
-- 15 of 28 --
12
only be able to do so at the risk of paying costs to the
government if they fail. His Honour added the opinion that
the inhibiting effect of the risk of paying costs in such
cases is excessive and not in the public interest.
Kent v. Cavanagh was not a case in which a successful
defendant was ordered to pay costs, but one where, for the
reasons mentioned by Fox J., no order as to costs was made
against the plaintiffs. What was said by his Honour in that
case is to some extent now reflected in s.49(2)(b) of the
Act in Queensland; but I doubt if the present case falls
within its terms. Section 49(2)(b) appears to be directed
to proceedings in which it is the public interest rather
than any private right of the applicant that is sought to be
vindicated by the application. Here, the residents are
understandably aggrieved at bearing what they see as a
disproportionate share of the burden imposed by a public
project; but it remains true to say that it was their rights
of property and personal convenience and not the public
interest they were intent on protecting when they made the
review application.
Furthermore, even accepting that, as the Judge said,
the residents' application was not frivolous or
unreasonable, his Honour was nevertheless able to dispose of
it on the Minister's application to strike it out summarily,
and to do so without a full hearing of all the issues said
to be involved. Expressed broadly, the criticism levelled
against the Minister's decision was, as his Honour found, of
a factual nature for which judicial review under the Act was
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13
not available. It is thus not easy to conclude that, within
the meaning of s.49(2)(c), the proceedings disclosed a
reasonable basis for the review application. As regards the
factors mentioned in s.49(2)(a), the financial positions of
each of the 11 applicant residents are briefly set out in
the affidavits read in support of the costs application.
Although several of the applicants are in apparently secure
employment, it is fair to say that on the evidence before us
none of them is well off, and a few have little or no income
at all. A complaint common to all of them, which is to some
extent supported by evidence, is that the rail link project
has already had a depressing effect on the values of their
properties along the route.
When these matters are considered in conjunction with
other circumstances identified by his Honour, I am not
persuaded that a case is made out that would justify
exercising the discretion under s.49 so as to make an order
that the respondent Minister pay the costs of the applicant
residents. I believe it appropriate that there be no order
as to costs, which means that the costs, both of and
incidental to the review application and the application to
strike out, will lie where they fall.
As to the costs in this Court, we gave leave under
s.49(5) to the Minister to appeal but we did so on terms
that the appellant paid the residents' costs of an appeal
which, it was conceded, has been undertaken in the long-term
interests of the appellant and others similarly placed. In
the proceedings below the Judge reserved to the Court of
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14
Appeal the costs of the Minister's application to him for
leave to appeal, and I consider that, as part of the costs
incurred in appealing here, the appellant should also be
ordered to pay the residents' costs of and incidental to
that application.
The outcome therefore is that the appeal is allowed.
The order made on 5 November 1993 that the respondent
Minister pay the costs of the applicants (except the first
applicant) in respect of the original application for
judicial review and of the further applications referred to
in that order is set aside. In lieu there will be no order
as to the costs of those proceedings. Further order that
the appellant pay the costs of the appeal and of the
application made on 30 November 1993 for leave to appeal of
the respondents to this appeal.
-- 18 of 28 --
1
IN THE COURT OF APPEAL
SUPREME COURT OF QUEENSLAND Appeal No. 249 of 1993
Brisbane
[Minister for Transport v. Anghel & Ors.]
BETWEEN SOUTH EAST QUEENSLAND PROGRESS ASSOCIATION
(First Applicant)
- and -
GRETA DORETHEA ANGHEL
(Second Applicant) First Respondent
- and -
ANTHONY JAMES BERGLAS
(Third Applicant) Second Respondent
- and -
JOHN CRISPIN BOULSOVER
(Fourth Applicant) Third Respondent
- and -
TIMOTHY HENRI JEREMY FLORIN
(Fifth Applicant) Fourth Respondent
- and -
ALBERT HECTOR NORD
(Sixth Applicant) Fifth Respondent
- and -
JOHN EDGAR NORTON
(Seventh Applicant) Sixth Respondent
- and -
JAMES BRODIE PROSS
(Eighth Applicant) Seventh Respondent
- and -
ALICE SIMPSON
(Ninth Applicant) Eighth Respondent
- and -
NOEL SMITH
(Tenth Applicant) Ninth Respondent
-- 19 of 28 --
2
- and -
BARBARA FRANCIS THORN
(Eleventh Applicant) Tenth Respondent
- and -
VERNON JOHN WILLIAMS
(Twelfth Applicant)Eleventh Respondent
- and -
MINISTER FOR TRANSPORT AND MINISTER
ASSISTING THE PREMIER ON ECONOMIC
AND TRADE DEVELOPMENT
(Respondent) Appellant
Fitzgerald P.
McPherson J.A.
Shepherdson J.
Judgment delivered 28/06/94
Separate reasons for judgment by Fitzgerald P., McPherson J.A.
and Shepherdson J.
APPEAL ALLOWED. THE ORDER MADE ON 5 NOVEMBER 1993 THAT THE
RESPONDENT MINISTER PAY THE COSTS OF THE APPLICANTS (EXCEPT
THE FIRST APPLICANT) IN RESPECT OF THE ORIGINAL APPLICATION
FOR JUDICIAL REVIEW AND OF THE FURTHER APPLICATIONS REFERRED
TO IN THAT ORDER IS SET ASIDE. IN LIEU THERE WILL BE NO ORDER
AS TO THE COSTS OF THOSE PROCEEDINGS. FURTHER ORDER THAT THE
APPELLANT PAY THE COSTS OF THE APPEAL AND OF THE APPLICATION
MADE ON 30 NOVEMBER 1993 FOR LEAVE TO APPEAL OF THE
RESPONDENTS TO THIS APPEAL.
CATCHWORDS JUDICIAL REVIEW - COSTS - Whether successful
respondent may be ordered to pay proper costs of
applicant under s.49 Judicial Review Act 1991 -
Minister approved rail link - Residents sought
judicial review and indemnity for costs under
s.49 - Review application dismissed but costs
ordered against Minister - Costs order appealed
- Whether s.49 displaces O.91 R.S.C. - Nature
of O.91 R.S.C. considered - Factors relevant to
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fresh exercise of discretion - Whether ordinary
citizens threatened by public project should be
funded in pursuing remedies.
Counsel: M. Plunkett for the appellant
J. Allen for the respondent
Solicitors: Crown Solicitor for the appellant
Peter Channel & Associates for the respondent
Hearing Date: 26 May 1994
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4
IN THE COURT OF APPEAL
SUPREME COURT OF
QUEENSLAND
C.A. No. 249 of 1993
Brisbane
Before The President
Mr Justice McPherson
Mr Justice Shepherdson
[Minister for Transport v. G.D. Anghel & Ors]
SOUTH EAST QUEENSLAND PROGRESS ASSOCIATION
First Respondent
- and -
GRETA DORETHEA ANGHEL
Second Respondent
- and -
ANTHONY JAMES BERGLAS
Third Respondent
- and -
JOHN CRISPIN BOULSOVER
Fourth Respondent
- and -
TIMOTHY HENRI JEREMY FLORIN
Fifth Respondent
- and -
ALBERT HECTOR NORD
Sixth Respondent
- and -
JOHN EDGAR NORTON
Seventh Respondent
- and -
JAMES BRODIE PROSS
Eighth Respondent
- and -
-- 22 of 28 --
5
ALICE SIMPSON
Ninth Respondent
- and -
NOEL SMITH
Tenth Respondent
- and -
BARBARA FRANCES THORN
Eleventh Respondent
- and -
VERNON JOHN WILLIAMS
Twelfth Respondent
- and -
MINISTER FOR TRANSPORT AND MINISTER ASSISTING
THE PREMIER ON ECONOMIC AND TRADE DEVELOPMENT
Appellant
REASONS FOR JUDGMENT - SHEPHERDSON J.
Judgment Delivered 28 June 1994
-- 23 of 28 --
I have had the benefit of reading in draft the reasons
for judgment prepared by the President and McPherson J.A.
I agree with them that the appeal must be allowed and I
agree with the orders proposed. I do so for reasons
different from those appearing in their judgments and I now
set out my reasons.
I have found section 49 a rather difficult section in
the Judicial Review Act. Its provisions were apt to meet
the application made by the respondents.
Section 49 does not and cannot apply to applications for
costs by every party to a review application. That this is
so appears from subsection 49(1) which limits the class of
persons by whom costs applications can be made, e.g. the
party whose decision is sought to be reviewed under say
section 20 of the Judicial Review Act, cannot make a "costs
application" under subsection 49(1).
The emphasis in subsection 49(2) is on the applicant for
the "costs application" and, in part, on his financial
resources. Subsection 49(2) appears to assume that any
respondent to a review application will always be able to
withstand an order for costs made against him or it by a
successful applicant. Is this assumption correct? What of
an impecunious local authority whose rate payers are hard
hit by drought and/or recession and are unable to pay the
rates on which the local authority relies for financial
survival and which makes a "decision to which this Act
applies" (see section 4) from which an application to review
is successfully brought?
As I read section 49, such an authority cannot rely on
subsection 49(1). Another rather unsatisfactory aspect of
section 49 is that it appears to be concerned with a "costs
application" made before the review application is finally
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2
heard and determined - see subsection 49(3) giving the Court
power to revoke etc. any order made under section 49, if for
example the applicant has failed to prosecute the review
application with due diligence and also subsection 49(5)
which requires leave of the Court of Appeal for an appeal
from an order under section 49. Despite this apparent limit
in the use of a "costs application" I must say that on its
literal construction, section 49 is capable of applying to
applicants who after final judgment has been delivered,
apply for a costs order of the type specified in say
subsection 49(1)(e).
I have mentioned the above aspects of section 49 to
indicate why I consider the section rather difficult and to
illustrate that it is not capable of being utilised by all
parties to an application for Judicial Review.
The power of any court to deal with costs or proceedings
before it is important.
In my view, the construction of subsection 49(4) is of
vital importance in the present case. That subsection
reads:-
"(4) Subject to this section, the rules of court
made in relation to the awarding of costs apply to
a proceeding arising out of a review application."
By section 3 of the Judicial Review Act "rules of court"
mean "the rules of the Court and until Schedules 4 and 5 are
repealed, include the provisions of those Schedules."
"Court" means the Supreme Court (section 3).
Thus far, the rules of court referred to in subsection
49(4) mean the Rules of the Supreme Court of Queensland.
Section 58 of the Judicial Review Act which is headed
"Amendment of rules of court" confirms this view. That
section reads:-
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3
"58.(1) The rules of court are amended as set out
in this section.
(2) Order 81 -
omit.
(3) Schedule 1 (Part 20, Forms 465 to 490)-
omit.
(4) The rules set out in Schedule 4, and the forms
set out in Schedule 5, have effect in place of the
rules and forms mentioned in subsections (2) and
(3).
(5) One year after the commencement of this Act, or
on such earlier day as may be fixed by the Governor
in Council by Gazette notice, Schedules 4 and 5 are
repealed by force of this subsection.
(6) The rules set out in Schedule 4, and the forms
set out in Schedule 5, immediately before the
repeal of those Schedules, have effect, after the
repeal, as if they were rules and forms of the
rules of court made under section 11 of the Supreme
Court Act 1921, and may be amended or repealed
accordingly."
I note particularly the above subsection 58(4) and point
out that Schedule 4 in the Judicial Review Act is headed
"Rules of Court Relating to Applications for Judicial
Review" and Schedule 5 contains "Forms Relating to
Applications for Judicial Review".
There is not within the Judicial Review Act including
Schedule 4 any rule of Court made in relation to awarding of
costs. Further, Rule 23 appearing in Schedule 4 contains a
reference to "Order 41 Rule 27 of the rules of Court" and
subsection 58(1) of the Judicial Review Act expressly refers
to amendment of "rules of court" in section 58 and
subsection 58(2) omits "Order 81". Order 81 of the Rules of
the Supreme Court deals with the various writs which the
provisions of the Judicial Review Act are intended to
replace.
In the absence of a rule of court made under the
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4
Judicial Review Act including Schedule 4 to that Act in
relation to the awarding of costs, it is my view that a
judge or Court exercising jurisdiction under the Judicial
Review Act on a question of costs must apply the rules of
the Supreme Court relating to the awarding of costs but
subject to the operation (if any) of section 49 on those
rules.
Under Order 91 Rule 1 of the rules of the Supreme Court,
costs of and incidental to all proceedings in the Supreme
Court are in the discretion of the Court or Judge, subject
to the provisions of the Judicature Act and the Rules of the
Supreme Court.
The general interpretation of that rule is that costs
follow the event e.g. where there are no materials before
the Judge upon which he can exercise his discretion as to
costs, he ought not to deprive a successful party of its
costs (The Civil Service Co-Operative Society Ltd v. The
General Steam Navigation Co (1903) 2 K.B. 756).
However, that general rule is expressly made subject to
section 49 of the Judicial Review Act. (subsection 49(4))
In the instant case section 49 applied and the learned
trial Judge, when considering the costs application, had
before him some evidence of the financial resources of some
of the applicant respondents.
In my respectful view the learned trial Judge erred in
law when he said that his order for costs was made under his
general discretion and the influence upon that of the three
points mentioned in the reasons of McPherson J.A. and he
failed to consider all of subsection 49(2). The learned
trial Judge specifically said that subsection 49(2)(b) was
not the basis of his exercise of discretion.
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5
Because of that error in law the decision must be set
aside and it falls to this Court to exercise the discretion
afresh. I agree with the orders proposed by McPherson J.A.
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Official source: https://www.sclqld.org.au/caselaw/QCA/1994/232