Uniting Church in Australia (NSW Synod) v Legge

The Uniting Church in Australia (NSW Synod) appealed to the Supreme Court of New South Wales against a decision of the Compensation Court concerning costs. The dispute arose from a workers' compensation claim where the appellant had made a settlement offer that was ultimately rejected by the respondent, Ms. Legge. Following the determination of the claim, the appellant sought to recover its costs on the basis that its settlement offer was reasonable and should have been accepted.

The central legal issues before the Supreme Court were whether the settlement offer made by the appellant was reasonable within the meaning of section 115 of the *Workplace Injury Management and Workers Compensation Act 1998* (NSW), and if so, whether the Compensation Court retained a discretion to award costs to the respondent even if the offer was deemed reasonable.

The Supreme Court considered the provisions of section 115 of the Act, which allows a court to order a claimant to pay the costs of the respondent if the claimant fails to obtain judgment more favourable than a settlement offer made by the respondent. The Court found that the Compensation Court had correctly assessed the reasonableness of the settlement offer in light of the circumstances of the case. Crucially, the Supreme Court affirmed that section 115 does not mandate an award of costs against a claimant whose offer is deemed reasonable; rather, it confers a discretion upon the court. In this instance, the Compensation Court had exercised its discretion not to award costs to the appellant, a decision which the Supreme Court found was not erroneous.

Consequently, leave to appeal was granted, but the appeal itself was dismissed, with the appellant ordered to pay the respondent's costs.