Donovan Hill Pty Ltd v McNab Constructions Australia Pty Ltd

Donovan Hill Pty Ltd, the applicant, sought to join various parties to proceedings before the Queensland Civil and Administrative Tribunal (QCAT) which were initially brought by McNab Constructions Australia Pty Ltd, the respondent, to review directions issued by the Queensland Building Services Authority (QBSA) concerning an apartment complex. The review proceedings were brought under section 42 of the QCAT Act, which allows for the joinder of additional parties. QCAT dismissed the application to join the additional parties and directed that costs applications be filed by a certain date. Following this, Donovan Hill and three other proposed parties filed their own applications for costs. The Tribunal member made orders in favour of all four applicants. McNab appealed the costs orders made in favour of Donovan Hill and the other two proposed parties. The Appeal Tribunal set aside the costs orders and dismissed the costs applications of all three parties. A key issue before both the Tribunal member and the Appeal Tribunal was whether QCAT has the power to award costs to a person who successfully resists a joinder application.

The Appeal Tribunal held that QCAT lacks the power to award costs to a party who successfully resists a joinder application. This decision was based on the Tribunal's interpretation of its jurisdiction under the QCAT Act. The Appeal Tribunal concluded that the determination of a joinder application under section 42 is not an exercise of QCAT's original jurisdiction, but rather its review jurisdiction. Given this, the Appeal Tribunal reasoned that QCAT cannot award costs in such circumstances because it does not have the inherent jurisdiction to do so in the context of a review proceeding. The Appeal Tribunal thus allowed the appeal, set aside the costs orders, and dismissed the costs applications of Donovan Hill and the other two proposed parties.

Following the Appeal Tribunal's decision, Donovan Hill applied for leave to appeal to the Supreme Court of Queensland. The Court granted leave but ultimately dismissed the appeal. The Court affirmed the Appeal Tribunal's reasoning and held that QCAT does not have the power to award costs to a party who successfully resists a joinder application. The Court also ordered that Donovan Hill pay McNab's costs of the application and the appeal on the standard basis.