Thurin v Krongold Constructions (Aust) Pty Ltd [No 2]

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SUPREME COURT OF VICTORIA

COURT OF APPEAL

S EAPCI 2022 0051
DAVID THURIN First Applicant
and
LISA THURIN Second Applicant
v

KRONGOLD CONSTRUCTIONS (AUST) PTY LTD

(ACN 103 839 49) (AND OTHERS ACCORDING TO THE ATTACHED SCHEDULE) [NO 2]

Respondents

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JUDGES: McLEISH, NIALL and WALKER JJA
WHERE HELD: Melbourne
DATE OF HEARING: Determined on the papers 
DATE OF JUDGMENT: 18 November 2022
MEDIUM NEUTRAL CITATION: [2022] VSCA 252

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PRACTICE AND PROCEDURE – Costs – Referral of questions of law by Victorian Civil and Administrative Tribunal – Parties enjoyed mixed success on referral – Whether referral akin to interlocutory application – Justice lies in parties bearing own costs – Practical issues with costs being in cause of VCAT proceeding – General public importance in answering questions of law – No order as to costs.

Supreme Court Act 1986, s 24(1).

Major Engineering Pty Ltd v Helios Electroheat Pty Ltd [No 2] [2006] VSCA 114; Swindells v Victoria [2016] VSCA 77; Chen v Chan [No 2] [2009] VSCA 233, referred to.

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Counsel

Applicants: Mr MG Roberts KC with Dr COH Parkinson KC and Mr N Guenther
First Respondent: Mr JAF Twigg KC with Dr K Weston-Scheuber, Mr M Hosking and Mr CFE Dawlings
Second Respondent Mr AE Klotz
Third Respondent Mr KJ Naish
Attorney-General of the Commonwealth Mr G Hill SC with Ms S Zeleznikow
Attorney-General for the State of Victoria Ms RJ Orr KC with Mr OM Ciolek and Mr L Chircop

Solicitors

Applicants: Herbert Smith Freehills
First Respondent: Krongold Group
Second Respondent Meridian Lawyers
Third Respondent DLA Piper
Attorney-General of the Commonwealth Australian Government Solicitor
Attorney-General for the State of Victoria Victorian Government Solicitor’s Office

MCLEISH JA
NIALL JA
WALKER JA:

  1. On 20 October 2022, following a referral of six questions of law to this Court from the Victorian Civil and Administrative Tribunal (‘VCAT’), we published our reasons in Thurin v Krongold Constructions (Aust) Pty Ltd.[1] We made substantive orders but reserved our decision on costs. In our reasons we noted that our inclination was that, because each party had had a measure of success, and because the ultimate fate of any referral application under s 77 of the Victorian Civil and Administrative Tribunal Act 1998 (‘VCAT Act’) remained unknown, there should be no order as to costs.[2]

    [1][2022] VSCA 226 (‘Reasons’). These reasons concerning the costs of the proceeding in this Court assume familiarity with the Reasons.

    [2]Reasons, [166].

  2. At the request of the parties, orders were made for the filing of submissions on costs. In summary, those submissions were as follows:

    (a)the applicants (‘the Thurins’) contended that costs should be costs in the cause of the VCAT proceeding or, alternatively, that costs should be reserved until the outcome of the VCAT proceeding is known;

    (b)Krongold Constructions (Aust) Pty Ltd (‘Krongold’) submitted that there should be no order as to costs;

    (c)Swan Hardware & Staff Pty Ltd (‘Swan Hardware’) sought an order that Krongold pay its costs of the referral;…

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Details
Case
[2022] VSCA 252
Decision Date

CaseChat Overview and Summary

Thurin v Krongold Constructions (Aust) Pty Ltd [No 2] involved the applicant, Thurin, and the respondent, Krongold Constructions, in a dispute that was referred to the Court for questions of law. The Victorian Civil and Administrative Tribunal (VCAT) had referred questions of law to the Court, and the parties had mixed success in their submissions. The central issue before the Court was whether the referral of questions of law by VCAT was akin to an interlocutory application and, if so, whether the usual rule of costs in such cases applied. Additionally, the Court had to consider the public importance of resolving these questions of law and the practical issues surrounding costs in the context of the VCAT proceeding.

The Court examined the nature of the referral by VCAT and noted the mixed success of the parties on the referral. It considered the principles established in Major Engineering Pty Ltd v Helios Electroheat Pty Ltd [No 2], Swindells v Victoria, and Chen v Chan [No 2], which addressed the allocation of costs in interlocutory applications and referrals of questions of law. The Court concluded that the referral was not akin to an interlocutory application, and therefore, the usual rule of costs did not apply. The Court also highlighted the practical issues with costs being in the cause of the VCAT proceeding and the general public importance in answering the questions of law. Given these considerations, the Court decided not to make an order as to costs.

The Court's reasoning was grounded in the unique circumstances of the referral and the need to balance the parties' interests with the broader public interest. The Court recognised that while the referral had significant public importance, it did not fit neatly into the category of interlocutory applications where costs are typically awarded. Therefore, the Court exercised its discretion not to make an order as to costs, acknowledging the mixed success of the parties and the practical implications of such an order.

The final outcome was that no order was made as to costs, reflecting the Court's balanced approach to the matter. This decision underscores the importance of considering the unique aspects of each case when determining costs in referrals of questions of law.

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