Muswellbrook Shire Council v Hunter Valley Energy Coal Pty Ltd

The appeal concerned a dispute between Muswellbrook Shire Council and Hunter Valley Energy Coal Pty Ltd regarding conditions of a project approval for a coal mine. The Land and Environment Court of New South Wales had previously made orders in favour of Hunter Valley Energy Coal Pty Ltd. Muswellbrook Shire Council appealed these decisions to the Court of Appeal of New South Wales.

The Court of Appeal was required to determine whether certain conditions of the project approval stipulated objective jurisdictional facts, the satisfaction of which was a prerequisite for the decision-maker's powers to be exercised. Additionally, the Court considered whether the decision-maker's satisfaction with the mining strategy was legally unreasonable, or if their view was at least arguable. The Court also addressed whether leave to appeal was required against a costs order when an appeal as of right existed against the substantive orders.

The Court reasoned that the conditions in question did not establish objective jurisdictional facts, meaning their satisfaction was not a precondition to the exercise of the decision-maker's powers. Regarding the unreasonableness of the decision-maker's satisfaction with the mining strategy, the Court found that the decision-maker's view was at least arguable, and therefore not legally unreasonable. The Court also determined that leave to appeal was not required against the costs order given the appeal as of right on the substantive matters.

The Court of Appeal dismissed the Council's appeal from the judgment of the Land and Environment Court concerning the substantive orders. However, the Council's appeal regarding the costs order made in favour of the Secretary, Department of Planning and Environment, was allowed, with no order as to costs made between the Council and the Secretary. The appellant Council was ordered to pay Hunter Valley Energy Coal Pty Ltd's costs, and the Secretary was ordered to pay 20% of the Council's costs in the Court of Appeal.