Newcastle City Council v McShane (No 2)

Newcastle City Council (the Council) and McShane (the plaintiff) were parties to litigation concerning a dispute that proceeded to the Court of Appeal.

The central legal issue before the Court of Appeal was whether section 198D of the *Legal Profession Act 2004* (NSW) (the Act), which deals with the recovery of costs in relation to a Calderbank offer, extended to costs incurred in the Court of Appeal itself.

The Court of Appeal held that section 198D of the Act did not apply to costs incurred in the Court of Appeal. The Court reasoned that the section was confined in its operation to costs incurred in the court of first instance. Accordingly, the Council's application for an order for costs pursuant to section 198D in respect of the appeal was dismissed.