Jeray v Blue Mountains City Council

Jeray (the applicant) sought a stay of a costs order made by Lloyd J on 16 July 2009, in proceedings against Blue Mountains City Council (the first respondent). The application was heard by Hodgson JA in the Court of Appeal of New South Wales.

The primary legal issue before the court was whether an order staying the enforcement of a costs order should also prevent the assessment of those costs. The applicant sought to prevent the costs assessment from proceeding pending the determination of their application for leave to appeal and the appeal itself.

Hodgson JA considered the nature of a stay of a costs order and its implications for the assessment process. His Honour distinguished between the enforcement of a costs order and the assessment of the quantum of those costs. The court's reasoning indicated that a stay of enforcement typically does not automatically encompass a stay of the assessment process, which is a preliminary step to determining the final amount payable.

The court made orders that stayed the commencement of a costs assessment in relation to the costs orders made by Lloyd J until the application for leave and/or appeal was determined. However, the court clarified that this stay was not intended to prevent the costs assessment from proceeding in relation to such costs orders. The costs of this application were ordered to be costs in the application for leave and appeal, should leave be granted.