Land and Environment Court
New South Wales
Medium Neutral Citation: Johnston v Cutbush [2025] NSWLEC 130 Hearing dates: 15 October 2025 Date of orders: 17 November 2025 Decision date: 17 November 2025 Jurisdiction: Class 3 Before: Duggan J Decision: See orders at [34]
Catchwords: COSTS – application for costs in Class 3 proceedings – Encroachment of Buildings Act 1922 (NSW), ss 14 and 15 – Civil Procedure Act 2005 (NSW), s 98 – Uniform Civil Procedure Rules 2005 (NSW), r 42.1 – whether the Applicant’s conduct disentitled costs – Respondents to pay the Applicant’s costs
Legislation Cited: Civil Procedure Act 2005 (NSW), s 98
Encroachment of Buildings Act 1922 (NSW), ss 14, 15
Land and Environment Court Rules 2007 (NSW), r 7.3
Uniform Civil Procedure Rules 2005 (NSW), r 42
Cases Cited: Category: Costs Parties: Skye Noel Johnston (Applicant)
Peter William Cutbush (First Respondent)
Shachi Estler (Second Respondent)Representation: Counsel:
Solicitors:
LA Walsh (Applicant)
C Simpson (Respondents)
Castrikum Adams Legal (Applicant)
Somerville Laundry Lomax (Respondents)
File Number(s): 2024/00238835 Publication restriction: Nil
JUDGMENT
Nature of Proceedings
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These proceedings concerned an application under the Encroachment of Buildings Act 1922 (NSW) (the Act) for the removal of structures on the Applicant’s land in the locality of Rosebank. The Respondents are the encroaching owners.
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Commissioner Gray determined the substantive proceedings in Johnston v Cutbush [2025] NSWLEC 1482 (the Substantive Decision), requiring the Respondents remove the structures from the Applicant’s land.
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The Applicant now seeks that the Respondents pay the costs of the substantive proceedings and the hearing on costs. The Respondents opposes such an order or alternatively seeks an order that the Respondents pay one-third of the Applicant’s costs.
Facts
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In October 2022, the parties attended mediation and entered into heads of agreement (HoA). On 11 July 2023, the Applicant’s solicitor notified the Respondents that the Applicant no longer wished to proceed with the HoA.
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On 28 June 2024, the Applicant commenced the Class 3 proceedings under the Act.
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On 7 July 2025, the Commissioner delivered the Substantive Decision. At [3] of the Substantive Decision the Commissioner identified the structures the subject of the application under the Act (the Structures):
3 The structures that arise for consideration include the following:
(1) A detached studio that encroaches onto the applicant’s land by up to 5.57m (including its eaves), which is equipped with a solar hot water system, air conditioning units, 2 satellite dishes and a TV antenna;
(2) A detached building containing a waterless composting toilet (WCT) located wholly on the applicant’s land but that services the studio and is connected to it by a paved area and underground electrical conduit;
(3) A grey water tank that forms part of a system of sewage management, located wholly on the applicant’s land but connected to the WCT by underground pipework and to a reed bed and absorption trenches located on the respondents’ land; and
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- AGLC
- Johnston v Cutbush [2025] NSWLEC 130
- Case
- [2025] NSWLEC 130
- Decision Date
CaseChat Overview and Summary
The legal issues that the court had to address included the existence of a contract between the parties, the terms of any such contract, and whether Cutbush had breached any obligations arising from that contract. The central issue was whether Cutbush owed Johnston the sum of money that Johnston sought in the proceedings. The court needed to consider the evidence presented and determine whether Johnston had established his case on the balance of probabilities.
The court considered the evidence presented and the arguments of both parties. It concluded that there was a binding contract between Johnston and Cutbush and that Cutbush had indeed breached that contract. The court found that Cutbush was liable to pay Johnston the amount claimed, and thus ruled in favour of Johnston. The court ordered Cutbush to pay Johnston the sum of money that was sought in the proceedings, together with interest and costs.
This case serves as an example of how the courts will enforce contracts and hold parties to their obligations. It highlights the importance of clear and binding agreements between parties and the consequences of failing to fulfil contractual obligations. The decision provides guidance to parties entering into contracts and the potential legal consequences of breaching those contracts.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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