Rockdale City Council v Yong Xu

Case [2005] NSWLEC 581



Land and Environment Court


of New South Wales


CITATION:

Rockdale City Council v Yong Xu [2005] NSWLEC 581

PARTIES:

APPLICANT
Rockdale City Council

RESPONDENT
Yong Xu

FILE NUMBER(S):

40765 of 2005

CORAM:

Talbot ACJ

KEY ISSUES:

Costs :- whether conduct of council disentitling.

DATES OF HEARING: 27/09/2005
EX TEMPORE JUDGMENT DATE:

09/27/2005

LEGAL REPRESENTATIVES:

APPLICANT
Mr J M Reilly (Solicitor)
SOLICITORS
Abbott Tout

RESPONDENT
In person


JUDGMENT:


      THE LAND AND
      ENVIRONMENT COURT
      OF NEW SOUTH WALES

      Talbot ACJ

      27 September 2005

      40765 of 2005 Rockdale City Council v Yong Xu

      JUDGMENT

1 Talbot ACJ: In this matter proceedings were commenced by class 4 application on 14 July 2005 and the first return of the application class 4 was on 11 August 2005 before Bignold J. Directions were made on that day and the matter came before Pain J on 30 August 2005 when final orders were made.

2 Following the making of final orders by Pain J which were, as I understand, effectively by consent, or at least not opposed although the orders do not say they are by consent, nevertheless it is clear from what has been put to me by Mr Xu that he agreed to the making of the orders on 30 August 2005.

3 Following the making of those orders the business was closed. Prior to that Mr Xu had, according to his uncontested evidence, made a number of attempts since February 2005 to obtain from council relevant information to assist him to understand whether or not the property was a property where the business of a brothel could be conducted.

4 It is unfortunate that Mr Xu was not able to get satisfaction from the inquiries made of the council on his behalf, as I say his evidence is uncontested in that respect. He made a number of attempts to understand the position. However it was clear that after he commenced business he took the step of lodging a development application. That was done by 3 May 2005, business having commenced on 22 April 2005.

5 Difficulties were encountered in relation to the processing of the development application but ultimately it was formally rejected after council made some inquiries and became aware that the business was being carried on. Prior to that there had been an interim response to indicate that the brothel was proposed in a prohibited area. However, the fact is that on 18 May 2005 a notice of determination was issued so that from that date the respondent had advice formally from the council that the development application has been refused and that the development was prohibited.

6 Notwithstanding the receipt of that letter, Mr Xu renewed his efforts to obtain plans or diagrams that he required in order to ascertain the zoning position but, nevertheless, continued to trade.

7 The problem lies, after that date, squarely with Mr Xu in that having been told by council that it was prohibited in the letter of 18 May 2005, he nevertheless continued to carry on the business, as it turns out of course quite illegally.

8 True it may be that there has been difficulty in obtaining copies of the relevant material. The council, certainly from the evidence that is before me, has been less than cooperative with Mr Xu in terms of informing him in respect of the zoning that applied to the land upon which he proposed to carry on the business. The fact remains, nevertheless, that business was commenced prior to lodging any application with the council and indeed was continued after the development consent had been refused.

9 I am here to deal with the costs in relation to the proceedings which were not commenced until 14 July 2005. It is commendable that by the time the matter came on for hearing, Mr Xu had become aware of what the true position was and he brought the proceedings to an end shortly by consenting to the orders that were made by Pain J on 30 August 2005.

10 Unfortunately, however, that does not overcome the problem that had arisen following the notice of determination on 18 May 2005 and the continuation of the business after that. The council was justified in seeking to have the use of the property cease. I have not been appraised of any correspondence after 18 May 2005 when a letter attaching the notice of determination was sent to Mr Xu, but it was made clear in that letter that he was advised to cease the use immediately and that the matter would be forwarded to council’s solicitors for further action. So that on at least 18 May 2005 there was clear notice that the council was going to do something about it and Mr Xu should have been aware that there was to be some legal proceedings. As it turns out, they did not come before the Court until 11 August 2005. By then affidavits had been served and it must have been quite clear to Mr Xu that the use of the premises would have to cease.

11 I am not here to judge the council in relation to its processes and its efforts, or lack of effort, to assist Mr Xu with his endeavours to ascertain what the position was in relation to the zoning of the proposed property and the permissibility for its use as a brothel. Certainly, as I said before, it would appear that the council was less than cooperative and perhaps there should have been a greater effort on its part to assist the respondent to understand the position. Nevertheless that does not excuse the fact that the business commenced before a development application was lodged. There could have been no misapprehension that a development application was required irrespective of whether or not the use was prohibited.

12 After 18 May 2005 it had been made clear that the use was prohibited and that the use should cease. Further inquiries made after a private inquiry agent was engaged on 15 June 2005 showed that the business was continuing. The business indeed continued until the orders were complied with in early September.

13 In the circumstances it is appropriate that the respondent pay the council’s costs. I am satisfied that the amount claimed, including filing fees, appears to be a reasonable amount.

14 Accordingly, I order that the respondent pay the applicant’s costs in the sum of $4,588. There are no exhibits.

Details
AGLC
Rockdale City Council v Yong Xu [2005] NSWLEC 581
Case
[2005] NSWLEC 581
Decision Date

CaseChat Overview and Summary

In Rockdale City Council v Yong Xu, the applicant, Rockdale City Council, sought to recover costs from the respondent, Yong Xu, following a dispute over the operation of a brothel on property in Rockdale. The court was asked to determine whether the Council's conduct during the proceedings was such that it should not be awarded costs. The case proceeded through several hearings, culminating in an ex tempore judgment delivered by Talbot ACJ on 27 September 2005. Yong Xu had operated a brothel on the property without the necessary development consent, despite multiple attempts to ascertain the zoning of the land and the requirements for such a business. The Council had issued a notice of determination on 18 May 2005, indicating that the proposed use of the property was prohibited, but Xu continued to operate the brothel. The Council eventually commenced proceedings on 14 July 2005. The court found that while the Council could have been more cooperative in assisting Xu to understand the zoning requirements, Xu's primary fault lay in commencing and continuing the operation of the brothel without the necessary consent. The court held that Xu should have been aware of the need to cease operations after the notice of determination and that his continuation of the business post-determination justified the Council in seeking costs. The court ordered that Xu pay the Council's costs in the amount of $4,588, finding the claimed amount to be reasonable.

Talbot ACJ's judgment highlighted the key issue of whether the Council's conduct during the proceedings warranted a refusal to award costs to the Council. The court noted the Council's less than cooperative approach in providing information to Xu about the zoning and the permissibility of his proposed business. However, the court found that this did not excuse Xu's failure to comply with the zoning regulations. The critical point was that Xu began operating the brothel before lodging a development application, and despite being informed that the use was prohibited, he continued to operate the business. The court concluded that Xu's actions justified the Council in seeking to have the use of the property cease, and ultimately, in seeking costs for the proceedings. The court found that Xu's conduct post-determination of the notice of 18 May 2005 was the primary reason for the Council's need to take legal action. The court's decision to award costs to the Council reflected the necessity for Xu to cease his illegal activities and the reasonableness of the claimed costs.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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