Sansom v Port Stephens Council (No 2)

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Land and Environment Court


of New South Wales


CITATION: Sansom v Port Stephens Council (No 2) [2006] NSWLEC 504
PARTIES: APPLICANT
Jeffrey Joseph Sansom
RESPONDENT
Port Stephens Council
FILE NUMBER(S): 10155 of 2006
CORAM: Pain J
KEY ISSUES: Costs :- Whether costs should follow the event in preliminary question of law in Class 1 proceedings
LEGISLATION CITED: Environmental Planning and Assessment Act 1979 s 97,
Land and Environment Court Rules 1996 Pt 16 r 4
CASES CITED: Broadwater Action Group Inc v Richmond Valley Council (No 2) (2003) 129 LGERA 401 ;
Gee v Port Stephens Council (2003) 131 LGERA 325 ;
Gibson v Mosman Municipal Council (2001) 116 LGERA 397 ;
Grant v Kiama Municipal Council [2006] NSWLEC 70 ;
Hunter Development and Brokerage Pty Ltd v Cessnock City Council [2005] NSWLEC 727 (16 December 2005) ;
Kinder Investments Pty Ltd v Sydney City Council [2005] NSWLEC 737 (9 December 2005) ;
Outdoor Australia Pty Ltd v Auburn Council [1996] NSWLEC 71
DATES OF HEARING: 01/08/2006
 
DATE OF JUDGMENT: 

08/18/2006
LEGAL REPRESENTATIVES: APPLICANT
Mr J Kildea (Barrister)
SOLICITORS
Thompson Norrie Solicitors

RESPONDENT
Mr J Maston (Barrister)
SOLICITORS
Sparke Helmore



JUDGMENT:

      THE LAND AND
      ENVIRONMENT COURT
      OF NEW SOUTH WALES

      Pain J

      18 August 2006

      10155 of 2006 Jeffrey Joseph Sansom v Port Stephens Council (No 2)

      JUDGMENT ON COSTS

1 Her Honour: I determined a preliminary question of law in these Class 1 proceedings being a s 97 appeal under the Environmental Planning and Assessment Act 1979 (“the EP&A Act”) on 1 August 2006. The Council was successful on the question of law. As a result the Class 1 appeal in this matter cannot proceed.

2 The issue arises now as to whether I should award costs in the Council’s favour as it was successful on the preliminary question of law. Part 16 r 4 of the Land and Environment Court Rules 1996 (“the Rules”) provides:

          (1) This rule applies to the following proceedings in classes 1, 2 and 3 of the Court’s jurisdiction:
          (2) No order for the payment of costs will be made in proceedings to which this Rule applies unless the Court considers that the making of a costs order is, in the circumstances of the particular case, fair and reasonable.

3 The Council relied on Grantv Kiama Municipal Council [2006] NSWLEC 70 and Gee v Port Stephens Council (2003) 131 LGERA 325 to argue that costs should be awarded in its favour.

4 The Applicant argued that despite the decision in Grant v Kiama and Gee I should not award costs. The cases suggest a difference in view on the issue of whether costs ought be payable in relation to a preliminary question of law in Class 1 proceedings and I should not award costs. The Applicant relied on Broadwater Action Group Inc v Richmond Valley Council and Anor (No 2)

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Details
Case
[2006] NSWLEC 504
Decision Date

CaseChat Overview and Summary

In the case of Sansom v Port Stephens Council (No 2), the applicant, Jeffrey Joseph Sansom, sought to appeal a preliminary question of law in a Class 1 proceeding under the Environmental Planning and Assessment Act 1979. The Port Stephens Council, as the respondent, argued that costs should follow the event given its success on the preliminary question of law. The court was required to determine whether costs should be awarded to the respondent in such circumstances.

The legal issues at hand involved the interpretation of the relevant provisions under the Land and Environment Court Rules 1996, specifically Part 16 Rule 4, which governs the payment of costs in proceedings under the Environmental Planning and Assessment Act. The court had to consider the principles outlined in previous cases such as Grant v Kiama Municipal Council [2006] NSWLEC 70 and Gee v Port Stephens Council (2003) 131 LGERA 325, which suggested that costs could be awarded to the successful party on a preliminary question of law, against the arguments presented by the applicant based on cases like Broadwater Action Group Inc v Richmond Valley Council (No 2) (2003) 129 LGERA 401 and Outdoor Australia Pty Ltd v Auburn Council (1996) 89 LGERA 365, which indicated that costs should not be awarded in exceptional circumstances.

The court deliberated on the nature of the preliminary question of law and its separation from the merits of the appeal. It noted that while the question of law was distinct, it also involved some overlap with the merits of the case, specifically concerning the characterisation of the development under the relevant Local Environment Plan. The court held that the overlap warranted a cautious approach to awarding costs, and in light of the importance of not discouraging applicants from raising preliminary questions of law, the court found that it was fair and reasonable for each party to bear their own costs for the preliminary question of law.

Accordingly, the court ordered that each party was to pay its own costs of the hearing of the preliminary question of law.

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