Newcastle City Council v Wieland

Newcastle City Council (the Council) and Mr Wieland were parties to proceedings in the Supreme Court of New South Wales concerning a dispute. Mr Wieland sought to recover costs incurred in mediation as part of the costs of the proceedings. The Council opposed this claim. The matter proceeded to the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was whether the costs of mediation, undertaken pursuant to a court order, were recoverable as "costs of the proceedings" under section 28 of the *Civil Procedure Act 2005* (NSW).

The Court of Appeal considered the purpose of section 28, which allows for the recovery of costs of proceedings. It reasoned that mediation, when ordered by the court, is an integral part of the litigation process and serves to facilitate the resolution of disputes. Therefore, the costs incurred in such court-ordered mediation should be considered costs of the proceedings. The Court dismissed the appeal, upholding the principle that mediation costs, when mandated by the court, are recoverable.