Dillon v Gosford City Council

The appeal in *Dillon v Gosford City Council* concerned a challenge to orders made by the Land and Environment Court of New South Wales regarding the compulsory acquisition of an easement for the construction of a levee. The appellants, Dillon and others, sought to appeal against various aspects of the primary decision, including the assessment of market value, claims for disturbance, and the apportionment of costs for scour protection works, as well as a costs order made by the primary judge.

The central legal issues before the Court of Appeal were whether leave to appeal was required for the challenge to the costs order, given that the appeal also involved a bona fide challenge to other substantive orders, and whether the Land and Environment Court's existing practice regarding costs in valuation proceedings was consistent with established authority. The court also considered the principles governing the construction of easements and their impact on compulsory acquisition, as well as the principles for awarding costs in valuation proceedings, specifically the presumption that a claimant for compensation who has acted reasonably in commencing and maintaining proceedings should recover their costs.

The Court of Appeal determined that leave to appeal was not required for the challenge to the costs order because the appeal involved a genuine challenge to other orders in addition to the costs order. The court found that the primary judge erred in their costs order for the second stage of the proceedings, as it did not adequately reflect the reasonableness of the appellants' conduct. Consequently, the appeal was allowed in part, with the costs order for the second stage being set aside and replaced with an order that each party bear their own costs for those proceedings. The court also made specific orders regarding the costs of the appeal itself.