Civil and Administrative Tribunal
New South Wales
Medium Neutral Citation: Kelly v Smith (No2) [2018] NSWCATAD 141 Hearing dates: On the papers Date of orders: 02 July 2018 Decision date: 02 July 2018 Jurisdiction: Administrative and Equal Opportunity Division Before: R Titterton, Principal Member
M Bolt, Senior Member
B Thomson, General MemberDecision: The applicant is to pay the respondent’s costs, as agreed or as assessed.
Catchwords: COSTS – special circumstances - no question of principle Legislation Cited: Civil and Administrative Tribunal Act 2013 (NSW) Cases Cited: Commonwealth v Cockatoo Dockyard Pty Ltd [2003] NSWCA 192
CPD Holdings Pty Ltd t/as The Bathroom Exchange v Baguley [2015] NSWCATAP 21
Hopkins v Governor-General of Australia [2013] NSWCA 1068
Mergerditchian v Kurmond Homes Pty Ltd [2014] NSWCATAP 120
Moore v Inglis (1976) 50 ALJR 589Category: Costs Parties: Peter Kelly (Applicant)
Martin Smith (Respondent)Representation: Applicant: self-represented
Solicitors:
Colin Biggers & Paisley (Respondent)
File Number(s): 2017/000343134
REASONS FOR DECISION
Introduction
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In Kelly v Smith [2018] NSWCATAD 122, we dismissed Mr Kelly’s application that Mr Smith be disqualified from holding civic office in Ku-ring-ai Council.
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These reasons concern the costs of that application. For the following reasons, Mr Kelly, who was unsuccessful, must pay Mr Smith’s costs.
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We note that both parties were directed to file submissions on this issue. Submissions were received from Mr Smith on 13 June 2018, and from Mr Kelly on 22 June 2018.
Relevant principles
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Mr Kelly has been unsuccessful. In these matters, the usual rule is that each party bears its own costs: Civil and Administrative Tribunal Act 2013 (NSW) (NCAT Act), s 60(1). However, costs may be awarded only if there are special circumstances warranting an award of costs: s 60(2).
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Section 60(3) provides:
In determining whether there are special circumstances warranting an award of costs, the Tribunal may have regard to the following:
(a) whether a party has conducted the proceedings in a way that unnecessarily disadvantaged another party to the proceedings,
(b) whether a party has been responsible for prolonging unreasonably the time taken to complete the proceedings,
(c) the relative strengths of the claims made by each of the parties, including whether a party has made a claim that has no tenable basis in fact or law,
(d) the nature and complexity of the proceedings,
(e) whether the proceedings were frivolous or vexatious or otherwise misconceived or lacking in substance,
(f) whether a party has refused or failed to comply with the duty imposed by section 36 (3),
(g) any other matter that the Tribunal considers relevant.
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The respondent submits, in summary that:
the application was frivolous and untenable (NCAT Act, ss 60(3)(c) and (e));
the application was vexatious (NCAT Act, s 60(3)(e)); and
the application was an abuse of process (NCAT Act, s 60(3)(e));.
Mr Smith’s submissions
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As to the application being frivolous and untenable, Mr Smith relies on pars [25] and [26] of the primary decision, namely our findings that:
25. There is no evidence before the Tribunal on which…
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- AGLC
- Kelly v Smith (No2) [2018] NSWCATAD 141
- Case
- [2018] NSWCATAD 141
- Decision Date
CaseChat Overview and Summary
The legal issues that the court was required to address centred on the principles of costs in litigation and whether there were special circumstances that would warrant a departure from the usual rule of costs following the outcome of the case. Specifically, the court needed to determine if there were any exceptional factors that would justify the respondent being awarded costs despite losing the case.
In delivering the judgment, the court examined the nature of the dispute and the conduct of the parties throughout the litigation process. The court found that while there were no significant questions of principle at stake, the special circumstances of the case did warrant a particular consideration of the costs. The court acknowledged that the respondent had acted reasonably and in good faith, even though they were ultimately unsuccessful. Based on this assessment, the court concluded that it was appropriate for the respondent to be awarded costs, either as agreed upon by the parties or as assessed by the court.
The final orders of the court were that the applicant, Kelly, was to pay the respondent’s costs, in accordance with the terms agreed upon by the parties or, if no agreement could be reached, as assessed by the court. This decision reflected the court's recognition of the respondent's reasonable conduct despite the outcome of the case.
Orders
Orders of the court
The applicant is to pay the respondent’s costs, as agreed or as assessed.
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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