Port Stephens Council v Randell

Case [2000] NSWLEC 169



Land and Environment Court


of New South Wales


CITATION: Port Stephens Council v Randell [2000] NSWLEC 169
PARTIES:

APPLICANT
Port Stephens Council

RESPONDENT
Randell
FILE NUMBER(S): 40121 [No 2] of 1999
CORAM: Cowdroy J
KEY ISSUES: Costs :- Indemnity Costs
LEGISLATION CITED: Federal Court of Australia Act 1976 (Cth)
Land and Environment Court Act 1979
Land and Environment Court Rules 1996
Supreme Court Rules 1970
CASES CITED: Albert Hadid v Lenvest Communications Inc & Ors [2000] FCA 628;
Flemington Properties Pty Limited v Raine & Horne Commercial Pty Limited & Or (11 February 1998, no. 0053/98, Federal Court of Appeal) ;
Fountain Selected Meats (Sales) Pty Ltd v International Produce Merchants Pty Ltd and Ors (1988) ALR 397;
Multicon Engineering v Federal Airports Corporation 138 ALR 245;
Stelios Christofidellis & Ors v Ned & Visjna Zdrilic & Ors [2000] FCA 679
DATES OF HEARING: 2/08/00
DATE OF JUDGMENT:
08/28/2000
LEGAL REPRESENTATIVES:


APPLICANT
Mr J Maston (Barrister)

SOLICITORS
Sparke Helmore

RESPONDENT
Mr J Robson (Barrister)

SOLICITORS
Deacon Graham James

JUDGMENT:

IN THE LAND AND
ENVIRONMENT COURT
OF NEW SOUTH WALES
MATTER No. 40121 of 1999
CORAM: Cowdroy J
DECISION DATE: 28/8/00

Port Stephens Council

Applicant

v
Anthony Victor Randell

Respondent


JUDGMENT [No 2]

1. Port Stephens Council (“the applicant”) seeks an order that its costs of the class four proceedings be paid by the respondent and that such costs be paid on an indemnity basis from the 17 May 2000. On that date an attempt was made by the parties to negotiate a settlement of the proceedings and in the course thereof the applicant made a without prejudice offer (“the offer”) to the respondent. The offer provided that if the respondent removed dam F from his property and paid the applicant’s costs, the applicant would not press the Court for any order in respect of the other disputed dams on the respondent’s property namely dams A, B and C subject to such dams receiving geo-technical and hydrological certification. The offer was not accepted and the hearing of the proceedings continued. On 14 June 2000 the Court determined that dams C and F should be removed, the sites rehabilitated, and that dams A and B required appropriate certification.

2. The applicant contends that since the respondent has not achieved a more favourable result than the offer, the respondent should be ordered to pay indemnity costs from the date of the offer.

3. In Multicon Engineering Pty Limited v Federal Airports Corporation 138 ALR 245 Rolfe J considered an application for indemnity costs under Pt 52 r 17 of the Supreme Court Rules 1970 (“the SC Rules”) and said at 451:-


      In my opinion the proper approach to take to an offer of compromise, whether made under the Rules or pursuant to a Calderbank letter, is that there should be a prima facie presumption in the event of the offer not being accepted and in the event of the recipient of the offer not receiving a result more favourable than…

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Port Stephens Council v Randell [2000] NSWLEC 169
Case
[2000] NSWLEC 169
Decision Date

CaseChat Overview and Summary

Port Stephens Council initiated proceedings against Anthony Victor Randell, challenging the construction of dams on his property without the required development consent. The Land and Environment Court of New South Wales was tasked with resolving the dispute, focusing on the issue of indemnity costs in the context of the proceedings. The Council argued that since Randell did not achieve a more favourable result than a without prejudice offer made during settlement negotiations, he should be ordered to pay the Council's costs on an indemnity basis from the date of the offer.

The Court examined the principles for awarding indemnity costs, referencing cases such as Multicon Engineering v Federal Airports Corporation and Stelios Christofidellis & Ors v Ned & Visjna Zdrilic & Ors. The Court determined that the test for awarding indemnity costs involves assessing whether the rejection of a settlement offer was unreasonable, requiring a showing that the defendant's conduct was driven by ulterior motives or a wilful disregard of known facts or clearly established law. Given that the primary issue in the proceedings was the application of planning instruments, and Randell had a reasonable belief that his defence was arguable, the Court found that the rejection of the settlement offer was not unreasonable.

As a result, the Court dismissed the application for indemnity costs. However, it did order that the unsuccessful party, Randell, should pay the successful party's costs of the proceedings. The Court also issued specific orders regarding the removal of certain dams and the requirements for obtaining geo-technical and hydrological certifications for others. The orders were stayed for a period of twenty-eight days to allow for any necessary appeals or further applications.

Orders

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Background

Background to the litigation

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Evidence Before The Court

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Ratio Decidendi

Legal Principle Established

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