Frumar v The Owners of Strata Plan 36957

The appeal concerned a dispute over the assessment of costs by a costs assessor, which was subsequently reviewed by a Costs Review Panel. The claimant, Frumar, sought to challenge the Panel's determination, arguing that it failed to provide adequate reasons for its decision. The Owners of Strata Plan 36957 were the opposing party. The matter came before the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were whether the Costs Review Panel had provided sufficient reasons for its determination regarding the fairness and reasonableness of profit costs, and whether it had adequately explained the inclusion of cross-claim costs within the original costs order. The Court was required to consider the statutory requirement for reasons to be provided and whether the Panel's statements met this standard, particularly in relation to enabling a meaningful exercise of the right of appeal.

The Court of Appeal found that the reasons provided by the Costs Review Panel were insufficient. Applying the principle that reasons must be sufficient to enable a meaningful exercise of the right of appeal, the Court determined that the Panel’s statements that amounts were "fair and reasonable" lacked the necessary detail. Furthermore, the Court found that the Panel had not adequately explained its view of the original costs order or provided sufficient reasons for including the cross-claim costs in its assessment. Consequently, the Court allowed the appeal, set aside the orders of the primary judge, and remitted the decision to the Panel for redetermination.