Skabaw Pty Ltd v Morphett

Skabaw Pty Ltd, the appellant, was in dispute with Morphett, the respondent, over the terms of a contract. The matter was heard by the Victorian Civil and Administrative Tribunal, which had to determine whether Skabaw was entitled to a refund of costs incurred during the proceedings. Skabaw, initially unrepresented, engaged a legal practitioner partway through the hearing, which was then adjourned. The tribunal subsequently ordered Skabaw to pay Morphett's costs and directed Skabaw's legal representative to file a costs schedule. Skabaw argued that it had not been given a reasonable opportunity to review the materials and take instructions from its legal representative before being required to make submissions about the costs.

The legal issue was whether the tribunal had acted in a manner consistent with the principles of natural justice by requiring Skabaw's legal representative to make submissions on costs without allowing Skabaw a reasonable opportunity to review the materials and take instructions from its legal representative. The court considered the nature of the tribunal's power to order costs, the timing of Skabaw's engagement of its legal representative, and the tribunal's knowledge of Skabaw's unrepresented status. The court found that the tribunal had failed to provide Skabaw with a reasonable opportunity to review the materials and take instructions from its legal representative before making the submissions on costs. As a result, the orders for Skabaw to pay Morphett's costs were set aside in part.

The reasoning of the court was that the tribunal should have been aware that Skabaw had become represented during the course of the hearing and should have provided Skabaw with a reasonable opportunity to review the materials and take instructions from its legal representative before making the submissions on costs. The court noted that Skabaw had not been given an opportunity to review the materials and take instructions from its legal representative before the tribunal required it to make submissions on costs. The court held that this was a breach of the principles of natural justice. The orders for Skabaw to pay Morphett's costs were set aside in part, and the matter was remitted to the tribunal for further consideration.