Newcastle City Council v McShane (No 3)

Newcastle City Council (the Council) sought to recover costs from McShane in relation to an appeal. The central dispute concerned the application of a statutory cap on recoverable costs imposed by section 198D of the *Legal Profession Act 1987* (NSW) to costs incurred in an appeal. The matter was heard by Mason P, Giles JA, and Hunt AJA in the Court of Appeal of New South Wales.

The primary legal issue before the Court of Appeal was whether the cost cap stipulated in section 198D of the *Legal Profession Act 1987* extended to costs incurred in an appeal arising from a personal injury damages claim. The Council contended that the cap applied to all costs associated with such claims, including those incurred on appeal, while McShane argued for a narrower interpretation.

The Court of Appeal considered the wording of section 198D, which imposed a cap on costs recoverable "in connection with" personal injury damages claims. The Court concluded that the phrase "in connection with" was broad enough to encompass costs incurred on appeal. Therefore, the statutory cap applied to the costs sought by the Council in the appeal proceedings.

Consequently, the Council's amended notice of motion, which sought a declaration and other orders to the effect that the cost cap did not apply to appeal costs, was dismissed.