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High Court of New Zealand Decisions |
Last Updated: 17 September 2014
IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY
CIV-2013-409-001548 [2014] NZHC 1903
BETWEEN
|
TE WHARE O TE KAITIAKI
NGAHERE INCORPORATED SOCIETY Appellant
|
AND
|
ANIMAL CONTROL PRODUCTS LIMITED
Respondent
|
CIV-2013-409-001554
BETWEEN TE WHARE O TE KAITIAKI
NGAHERE INCORPORATED SOCIETY Appellant
AND WEST COAST REGIONAL COUNCIL First Respondent
AND TBFREE NEW ZEALAND LIMITED Second Respondent
AND EPRO LIMITED Third Respondent
AND DIRECTOR-GENERAL OF CONSERVATION
Fourth Respondent
AND ROGER LORIGAN Fifth Respondent
AND KANE STAFFORD Sixth Respondent
CIV-2014-409-000222
BETWEEN TE WHARE O TE KAITIAKI
NGAHERE INCORPORATED SOCIETY Appellant
AND WEST COAST REGIONAL COUNCIL First Respondent
TE WHARE O TE KAITIAKI NGAHERE INCORPORATED SOCIETY v ANIMAL CONTROL PRODUCTS
LIMITED AND ORS [2014] NZHC 1903 [13 August 2014]
AND
|
ANIMAL HEALTH BOARD
INCORPORATED Second Respondent
|
AND
|
EPRO LIMITED Third Respondent
|
AND
|
DIRECTOR-GENERAL OF CONSERVATION
Fourth Respondent
|
AND
|
ROGER LORIGAN Fifth Respondent
|
AND
|
KANE STAFFORD Sixth Respondent
|
AND
|
CHRISTOPHER COWAN Seventh Respondent
|
Hearing:
|
4 August 2014
|
Appearances:
|
DTD Dick, P Paterson and F Fehling appearing in person on behalf of
appellant
B G Williams and HSJ Pedler for TBFree NZ and Director General of
Conservation and Animal Control Products Limited N Laws for West
Coast Regional
Council, EPRO Limited,
K Stafford and R Lorigan
|
Judgment:
|
13 August 2014
|
JUDGMENT OF DUNNINGHAM J
A complicated proceeding is filed in the Environment Court
[1] Te Whare O Te Kaitiaki Ngahere Incorporated Society (Te Whare) is an organisation which is vehemently opposed to the use of 1080 poison.1 It became
concerned about alleged contraventions of conditions of 12
resource consents
1 Technically known as sodium monofluoroacetate, but more commonly known as 1080.
granted by the West Coast Regional Council to the Animal Health
Board
Incorporated2 to use 1080 for pest control.
[2] It took those concerns to the Environment Court, filing an application for 761 declarations against 39 different persons and organisations directly or indirectly involved with the distribution and use of 1080. The application was supported with
23 affidavits, with accompanying exhibits totalling nearly 1,500 pages, and
including several hours of video footage.
[3] Unsurprisingly with proceedings of such magnitude, a number of the
parties named in the proposed declarations applied to
the Environment Court to
strike out the application as it related to them or, in the alternative, to fix
security for costs.
[4] In due course, 323 of the declarations were either struck out or
withdrawn,3 but some 438 claimed declarations remain on foot, albeit
still subject to applications to have them strike them out.
How did these three appeals arise?
[5] There are three appeals addressed in this decision. They all
arise out of interlocutory decisions made by the Environment
Court in the course
of managing the declaration proceedings. I briefly explain the
circumstances in which each appeal arose
under the next three
headings.
The refusal to state a case
[6] In order to bring some focus into the proceedings, at a pre-hearing conference held on 15 May 2013, the Environment Judge tentatively identified two preliminary points of law which, depending on the outcome, would determine whether most of the remaining 438 applications could be sustained. She invited the parties to comment on the content and wording of the preliminary legal issues with a view to
setting them down for preliminary
argument.
2 Now TB Free New Zealand.
3 In either case with the agreement of a lawyer who was briefly engaged by Te Whare.
[7] Te Whare responded to the Court’s suggestion by
proposing alternative wording for the two points of law,
and identifying three
additional points of law upon which it sought a preliminary determination. The
additional questions revealed
that Te Whare was not simply concerned with
compliance with the conditions of resource consent, but also with how such
consents are
granted, including the consent authority’s decisions as to
who are affected persons and what constitutes “less than minor
effects”, for the purposes of deciding whether to notify an application
for resource consent.
[8] By a Minute dated 13 June 2013, the Court, confirmed the wording of
the two preliminary legal issues in the form accepted
by the s
2744 parties to the declaration proceeding rather than the
modified version proposed by Te Whare. The Court also declined to address
the
three additional legal issues which had been raised by Te Whare, primarily
because they were not legal issues which arose for
determination in the
proceedings already before the Court.
[9] In response, Te Whare sought that the Environment Court state a
case for the High Court on the five legal issues as framed
by Te Whare pursuant
to s 287 of the Resource Management Act 1991 (RMA). In a decision dated 11
September 2013, Judge Newhook declined
to do so.5
[10] The first appeal is brought in respect of that decision (The
Case Stated
Appeal).6
The application for security for costs
[11] Five applications for security for costs were filed by seven s 274
parties:
(a) TBFree New Zealand Limited (formerly the Animal Health Board
Incorporated);
(b) West Coast Regional Council;
4 Resource Management Act 1991, s 274.
5 Te Whare O Te Kaitiaki Ngahere Inc v Animal Health Board Incorporated and Ors
[2013] NZEnvC 210 [Case Stated Decision].
6 CIV-2013-409-1554.
(c) The Director-General of Conservation;
(d) Epro Limited, K. Stafford and R. Lorigan; and
(e) C. J. Cowan.
[12] Although, as the Court acknowledged, applications for security
for costs would normally be considered after any strike-out
application, here,
because there was a “plethora of claims”, it was considered
appropriate to determine the
application for security for costs prior to the
remaining strike-out applications.
[13] Te Whare did not agree with this course of action and
applied to the High Court for an order that the applications
for security for
costs be stayed. That application was declined and, on 3 March 2014, the
application for security for costs was
determined by the Environment
Court.7
[14] Although the quantum of security sought by each party ranged from
$5,000 to $20,000, the Court set the quantum for each of
the five applications
at $5,000. As a result, Te Whare was required to give security for costs either
by paying the total sum of
$25,000 into Court, or by giving security for that
sum to the satisfaction of the Registrar. Its application for declarations was
stayed until such security was given.
[15] The second appeal is brought in respect of that decision (the
Security for
Costs Appeal).8
The application for costs
[16] Animal Control Products Limited (ACP), was one of the 39 parties in respect of which declarations were sought. On 16 April 2013, the Court, with the agreement of Te Whare’s then-lawyer, granted the application to strike-out the declarations
affecting ACP, and 15 other parties, but with costs
reserved.
7 Te Whare O Te Kaitiaki Ngahere Incorporated v TBFree New Zealand and Ors [2014] NZEnvC
41 [Security for Costs Decision].
8 CIV-2013-409-222.
[17] ACP sought indemnity costs of $16,664.37, but costs of
$10,000 were awarded.9 Te Whare now appeals that award of costs
(the Costs Decision Appeal).10
[18] While these are three separate appeals, they all emanate from the
same Environment Court proceeding, they were heard together
in this Court, and
it is convenient to set out the decisions on all three appeals together given
the common factual background, and
the overlap in the parties
involved.
What is this Court’s jurisdiction on appeal?
[19] As was emphasised by the respondents on all three appeals, an appeal
against any decision of the Environment Court may only
be made to the High Court
on a question of law.11
[20] A question of law arises where the Environment
Court:12
(a) applied a wrong legal test; or
(b) came to a conclusion without evidence, or one to which, on the
evidence, it could not reasonably have come; or
(c) took into account matters which should not have been taken into
account; or
(d) failed to take into account matters which it should have taken into
account.
[21] It is the responsibility of the appellant to identify the question of law at issue and then to establish that the Environment Court has incorrectly determined that issue. An error of law must materially affect the result of the Environment Court’s
decision before the High Court should grant
relief.13
9 Re Te Whare O Te Kaitiaki Ngahere Incorporated [2013] NZEnvC 136 [Costs Decision].
10 CIV-2013-409-1548.
11 Resource Management Act 1991, s 299(1).
13 At 153.
[22] The appellant, Te Whare, had some difficulty in articulating the
question, or questions, of law that it relied on in each
appeal and to
differentiate that from an appeal of the substantive decision itself. In
reality, as Mr Paterson frankly acknowledged,
Te Whare’s main concern was
that it considered it had a legitimate case it wished to pursue on the granting
and implementation
of consents to use 1080, but the decision on security for
costs (and, to a lesser extent, the ACP costs decision) effectively precluded
its case from progressing.
[23] In other words, Te Whare’s case had, in effect, been struck
out, when there
was no proof the case was clearly untenable.14
[24] While I have borne that concern in mind as I discuss the three
appeals, it is only relevant if I am satisfied that the Environment
Court failed
to have regard to that consideration, and to take it into account, on the
occasions where it was relevant to the exercise
of its discretion.
The Case Stated Appeal
[25] Dealing first with the Case Stated Appeal, the five legal issues, as
framed by Te Whare, and which it asked to be referred
to the High Court under s
287 of the RMA, are as follows:
Main Questions of Law
(a) Is the democracy–undermining (incl. intimidating) potential
or real health–damaging effect of proven, negligent,
careless, and/or
deliberate misuse of ecotoxic 1080 poison a less–than–minor effect
on the general public (affected
persons) per SS.94A, 95E(1) Resource
Management Act (RMA), so that the public can be refused legal input and judicial
review
of resource consent application?
(b) Should the onus of proof per SS.94A, 95E(1) RMA and ss.4, 5, 6, 8,
9, 10 Bill of Rights, that 1080 practices, handling and distribution would have less than minor effects on the public (affected persons
and flora and fauna), lie with the Resource–Consent provider and/or
holder/applicant, rather than with the public (via its health
&
lives)?
14 Citing the test for striking out a cause of action articulated by the Court of Appeal in Attorney-General v Prince and Gardner [1998] 1 NZLR 262 (CA) at 267, referred as to by the Supreme Court in North Shore City Council v Attorney-General [2012] NZSC 49, [2012] 3
NZLR 341 at [145]-[146].
(c) Does the interpretation of “less-than-minor” level and “affected parties” per SS.94A, 95E(1) RMA have to be in line with SS.4, 6
Bill of Rights 1990? (See Ministry of Transport v Noort [1992] 3
NZLR 260 COA; Majority decision for the Interpretation of Laws to be in line
with the Bill of Law!)
Sub-Questions of Law
(d) Are resource consent–related permits or authorizations
granted by persons other than the consent authority (namely
the West Coast
Regional Council), and separately certain named guidelines, within the scope
of the resource consent granted
by this council and therefore
enforceable under the RMA – that means a declaration per S.310 with
enforcement orders
per S.316 in relation to the compliance with the
related permits or authorisations?
(e) Does an authorised person involved in the enactment of a Resource
Consent, without being a consent holder, owe a duty or
obligation to ensure
compliance with the conditions of a resource consent?
[26] In its decision declining Te Whare’s request, the Court dealt with the three “Main Questions of Law” separately from the last two “Sub-Questions of Law”.15 In relation to the first three questions of law, the Court held that they were not matters which arose in the application for declarations. Instead they called into question the non-notification of the original consent applications by the Regional Council, whereas the application for declarations was about alleged breaches of the conditions
on which the consents which were granted.
[27] Importantly, the Court also noted that s 310(h) of the RMA
expressly excluded from the jurisdiction of the Environment
Court, the
ability to issue a declaration as to whether any of sections 95-95F have been
contravened, (being the sections of the
RMA which are concerned with whether
applications for resource consent should be notified). Accordingly the
jurisdiction
for that is with the High Court, not the Environment
Court.
[28] The Environment Court Judge observed that although Te Whare aimed to get those issues into the High Court, it was not “in the interests of efficient administration of justice for proceedings wholly within the jurisdiction of the
High Court to arrive there via proceedings commenced in the Environment
Court on
15 Being headings ascribed to the questions by Te Whare.
different issues”.16 It concluded that “the present
proceedings should not be used as some kind of ill–conceived conduit
to the jurisdiction
of the High Court. Proceedings can be commenced there
directly if enabled by legislation and thought
appropriate”.17
[29] In relation to the last two questions, the Judge observed that
“Te Whare’s re- phrasing of the 2 issues neither
adds to nor
clarifies matters for preliminary determination”.18 More
importantly, the Judge held that providing the answers to such questions was
entirely within the competence and expertise of
the Environment Court as a
specialist Court and should be argued before it.19 If any party
was to consider the subsequent decision of the Environment Court to be wrong
then it would be amenable to appeal on points
of law in the usual
way.20
[30] Te Whare has filed a document in this appeal
described as an “Argumentation”, and which
sets out what is
described as a “first question of law on appeal to the High Court”
in respect of the Case Stated Appeal.
In reality it is two questions followed
by 10 numbered paragraphs which appear to range across a number of other
alleged errors
or questions of law.
First question of law in notice of appeal
[31] The purported first question of law reads as follows:
Must the judge’s discretionary opinion per S.287 RMA regarding the
requested referral of the applicant’s 5 questions of
law to the High Court
be based on correct RMA applications/interpretations rather than on arbitrary
at-will justice–perversion
and offender–protection from the law,
and
Does S.314(1)(e) (scope of enforcement order) together with S.319(3)(a) give
the Environment Court jurisdiction to determine the applicant’s
5
questions of law, with ordering a change or even revocation of unworkable
public-endangering 1080-related resource consents?
[32] It is obvious this is, in fact two questions, and the various
sub-points which then follow do not assist in clarifying what
the issues of law
raised by Te Whare are.
16 Case Stated Decision, above n 5 at [20].
17 At [21].
18 At [22].
19 At [24]-[25].
20 At [25].
However, the gist of Te Whare’s appeal appears to be that it was
unreasonable, illogical and in breach of natural justice for
the Judge to seek
to avoid determination of these questions by the High Court.
[33] The power of the Environment Court to state a case to the High Court
is set out in s 287 of the RMA:
287 Reference of questions of law to High Court
(1) The Environment Court may, in any proceedings before it, state a
case for the opinion of the High Court on any question
of law that arises in
those proceedings; and for that purpose may either conclude the proceedings
subject to that opinion, or adjourn
them until after that opinion has been
given.
(2) The case shall be settled and signed by an Environment Judge and
sent to the Registrar at the appropriate registry of the
High Court.
(3) The settling and signing of the case by an Environment Judge is
deemed to be the statement of the case by the Environment
Court.
(4) The Environment Court may, in relation to any case stated under
this section, after giving notice to the parties of its
intention to do so,
request the Registrar at the appropriate registry of the High Court for a
fixture for the determination of the
case.
(5) For the purposes of this section, the appropriate registry of the
High Court is the office of the High Court nearest to
the place where the
appeal, inquiry, or other proceedings was or is being conducted.
[34] The appellant has failed to understand that s 287 is a procedural
rather than substantive provision. It allows a question
of law which arises in
the case to be determined in the High Court where it is considered, in the
Judge’s discretion, more
appropriate to do so. This can either be before
the substantive hearing on the factual matters proceeds, or after resolution of
the factual issues, with the Environment Court’s decision subject to the
outcome of the legal ruling.
[35] It appears that this provision has not been used by the Environment Court to date, but that is unsurprising. As was said in Re Barrhill Chertsey Irrigation Ltd,21 there would need to be a proper reason for the Environment Court to refer matters directly to the High Court pursuant to s 287, without first expressing its conclusion
on the applications before it. While the Environment Court recognises a
concurrent
21 Re Barrhill Chertsey Irrigation Ltd EnvC C070/08, 16 June 2008.
ability for the High Court to determine legal issues, there is “a
reluctance” for the Environment Court to refer the proceedings
without
hearing the case and expressing a view, at least on the factual circumstances
and on the grounds of the application.22
[36] One could envisage a case for utilising s 287 where the legal issue
is not within the Environment Court’s usual area
of expertise (for
example, where a technical issue of property law must be determined before the
resource management issues can be
resolved). Similarly it could be used to
decide a preliminary issue of law, on which the outcome turns, and which
would be
taken on appeal to the High Court in any event. However, where
the questions of law involve concurrent factual determinations,
it will almost
always be more appropriate to hear them in the Environment Court first and then
to appeal any questions of law arising
to the High Court in light of the
Environment Court’s factual findings.
[37] In the present case, the appeal is against the exercise of the
Judge’s discretion as to whether it is appropriate to
refer a question of
law to the High Court. Where an appeal focuses upon the way in which judicial
discretion has been exercised,
the appellant must show the decision-maker:
23
(a) made an error of law or principle;
(b) failed to consider all relevant matters or took into account irrelevant
matters; or
(c) reached a decision that was plainly wrong.
[38] Given that the decision on whether to use s 287 has no impact on whether the legal issues can be addressed, but simply when and in what form they are to be addressed, the only relevant consideration is whether it would be advantageous or
desirable to do so. As was said in Wallace v Waipa District
Council:24
22 At [14].
23 Kacem v Bashir [2010] NZSC 112, [2011] 2 NZLR 1 at [32], citing May v May (1982) 1 NZFLR
165 (CA).
24 Wallace v Waipa District Council [2014] NZEnvC 24 at [32].
There are general appeal rights from decisions of the Environment Court to
the High Court on questions of law, with the result that
stating a case to the
High Court by the Environment Court during proceedings is an unusual one and a
power used only where the Court
is of the opinion that such a course of action
is desirable.
(citations omitted)
[39] In the Waipa case, the Court declined to refer the matter to
the High Court under s 287 of the RMA, saying:25
There is no question of law that has been clearly enough articulated that
would justify the need for such a course of action at this
stage of the
proceedings. ... if the applications ... succeed then Jezma can appeal that
decision if it believes that the Court has
made an error of law.
[40] In the present case I can see nothing to impeach the Judge’s
decision to
decline to use s 287 for much the same reasons as in the Waipa
case.
[41] First, Te Whare’s questions of law combine disputed issues
of fact with questions of law which make at least some
of them unsuited, in
their present form, for referral by way of case stated.
[42] Second, the question of law must “arise in the
proceedings”. The Environment Court correctly held
the first three
questions of law were not questions which arose in the application for
declarations, which were concerned with alleged
breaches of the consents. If
Te Whare had wanted to amend its application to incorporate declarations on
whether ss 95-95F RMA
had been contravened, those could not be the subject of an
Environment Court proceeding but would have to commence in the High Court.
The
Environment Court had no jurisdiction to determine those legal issues and
therefore no jurisdiction under s 287 to refer them.
The decision of the
Environment Court did not deny Te Whare’s rights to raise these issues,
but simply directed them to do
so in the Court with jurisdiction to do
so.
[43] Finally, the Environment Court quite properly considered that, to the extent the questions did cover areas of law for determination in the proceedings, those areas were within the Environment Court’s expertise to determine and Te Whare retained
its rights of appeal if the Environment Court’s determinations in
law were incorrect.
25 At [33]-[34].
[44] In short, the Court’s decision was entirely open to it in the
exercise of its discretion. The Court correctly understood
and applied the
legal test in s 287. It has not failed to take into account any relevant matter
nor considered any irrelevant matters
and there is no error of law in reaching
its conclusion.
Second question of law in notice of appeal
[45] The appellant’s notice of appeal also contains a second
question of law. It
reads as follows:
Should the defendants’ strike-out case/application and/or
security-for-costs case/application have been struck out per s 279(4)(a),(c)
on
the reason that proof of their frivolous, vexatious and abuse-of process
character had been provided, and
Does the Supreme-Court case-law example ([2012] NZSC 49) require entering the
standard hearing process under RMA provisions as
default, when no proof of
a “clearly untenable” case was provided?
[46] I interpret this “second question of law” (although,
again, it contains two questions) as suggesting that the
Environment Court Judge
should have struck out the applications by the s 274 parties to strike out the
plaintiff’s application
and/or for security for costs because the s 274
parties had not proved the plaintiff ’s case was clearly
untenable.
[47] This can be addressed very simply. Leaving aside whether these are,
in fact, questions of law, the decision of Judge Newhook
declining to state a
case to the High Court was neither asked to address this issue, nor did it.
There simply was no application
to this effect before the Court. I therefore
cannot find the Judge erred in law by not making such a decision, and this issue
has
no bearing whatsoever on the decision not to state a case to the High
Court.
[48] The appeal against the Environment Court’s refusal to state a
case to the High
Court on questions of law is dismissed.
Security for Costs Appeal
[49] This appeal is the one of greatest concern to Te Whare. In relation to this appeal Te Whare says the following questions of law arise:
Main Question of Law on Appeal to High Court:
Does the public interest in upholding the RMA’s safeguards (appeal
provisions S.299, enforcement order SS.314(e), 316, etc.)
against misuse of
extremely hazardous ecotoxic poison outweigh the pecuniary security-of- costs
interests of government-dependent/controlled
poisoning operators (the
defendants)?
Sub Questions of Law on Appeal to High Court:
1. Should the provision of the RMA (appeal provisions S299, enforcement
order SS.314(e), 316 etc.) be effectively invalidated
by granting
security-for-costs on reliance on wrong facts and by undermining current
Court-of-Appeal case laws?
2. Should the lower Environment Court appealed against effectively have
been allowed to decide an appeal to the High Court contrary
to appeal provision
per S.299?
[50] These questions, and the “argumentation” that follows,
essentially say that the Court’s decision has,
in practical terms,
struck out Te Whare’s application, denying it access to justice, when
its case is not “clearly
untenable”.
[51] However, again, I record that this is an appeal under s 299 of the
RMA, and not a general right of appeal. Moreover, it
is an appeal against the
exercise of a discretion and again can only succeed if it can be shown that the
Judge:26
(a) made an error of law or principle; or
(b) failed to consider all relevant matters or took into account relevant
matters; or
(c) reached a decision that was plainly wrong.
[52] Judge Kirkpatrick’s decision27 begins with a full and careful description of the relevant law on ordering payment of security for costs, including the principles and criteria against which the Court’s discretion might be exercised as summarised
in the head note of the judgment in Bell-Booth Group Limited v
Attorney-General.28
26 Kacem v Bashir, above n 23, at [32].
27 Security for Costs Decision, above n 7, at [19]-[28].
28 Bell-Booth Ltd v Attorney-General (1986) 1 PRNZ 457 (HC).
[53] The Judge established that the threshold for ordering security for
costs was met, saying “there is credible evidence
that if the s 274
parties are successful in their opposition to the application for declarations,
the assets of Te Whare will be
insufficient and it will be unable to pay their
Court costs”.29 That is not challenged on appeal.
[54] The Judge then took careful note of both Te Whare’s and the s
274 parties’ positions. In particular, he
considered Te
Whare’s submissions that awarding security for costs would have a
similar effect to a strike out
and, because the applications for
declarations had merit and were advanced in the public interest, an award of
security for costs
was not warranted.
[55] However, he also correctly observed that:30
While I accept that there is an onus on the s 274 parties to show why
security for costs should be ordered, I do not accept
that they must
show that Te Whare’s case is clearly untenable... the conceptual basis of
security for costs is quite different
to that in relation to a strike-out
application.
He acknowledged that while an order requiring
security:31
may have the effect of forcing an impecunious plaintiff or applicant to
discontinue its case, that is not its purpose... however,
it is a relevant
consideration in the exercise of the discretion...
[56] The Judge acknowledged that Te Whare had “made its application
in good faith”.32 However, he also took into account the
nature of the proceedings and the way they had been conducted, saying that Te
Whare had been
warned by the Court that these made it more likely that there
would be a costs award against Te Whare.33
[57] Regrettably, even the presentation of Te Whare’s case in this Court has reflected the concerns raised by the Environment Court. The submissions made by Te Whare lacked clarity and focus, confused legal and factual issues, introduced
irrelevant legal considerations and were expressed in pejorative
terms.
29 At [35].
30 At [33].
31 At [33].
32 At [36].
33 At [37].
[58] While the Courts afford considerable latitude to parties which are not represented by counsel, the convoluted expression of the various documents filed in support of the appeal reflects the concerns expressed by the four different Environment Court Judges who have been involved in these proceedings to date. Furthermore, Te Whare has failed to heed the warnings, or take up the suggestions, that have been made to it by the Court. For example, it has been suggested that Te Whare run a selection of “exemplar” declarations in the first instance, which would have limited its risk of a costs award and have led to a more favourable outcome on the issue of security for costs, but it has steadfastly resisted such
guidance.34 If Te Whare is unable to progress its
application, it is largely the
architect of its own fate.
[59] The appeal against the Environment Court’s decision to award
security for
costs in the total sum of $25,000 is dismissed.
The Costs Decision Appeal
[60] The last appeal is in relation to the decision to award costs
against Te Whare in favour of ACP following the applications
against ACP being
struck out.
[61] Again, I simply note that an award of costs involves the
exercise of a discretion, and this Court will only
intervene if the Judge was
acting on a wrong principle or failed to take into account some relevant matter,
or took into account
some irrelevant matter, or was plainly
wrong.35
[62] It is worth reiterating that, in ACP’s case, this was not a
simple matter of the applications against being withdrawn
by Te Whare at the
first possible opportunity, and when ACP had incurred minimal costs.
[63] Instead the application by ACP to be struck out was opposed by Te Whare’s
document dated 23 March 2012 and yet, in the same document, it agreed to an
order for strike out to be made in relation to ACP and
ostensibly supported by
an affidavit
35 Kacem v Bashir, above n 23, at [32].
opposing the strike out, but ending with the words “I agree the Animal
Control Products application should be struck out”.
This led to some
confusion, requiring a Minute to be issued seeking clarification of Te
Whare’s position. On 18 April 2013,
as a result of further confusion, the
Court again recorded for clarity that, in its decision of 16 April 2013, it had
struck out
all of the declarations sought in respect of all the 16 parties,
including ACP.
[64] The Environment Court costs decision,36 after setting out
the basis on which ACP sought indemnity costs and why Te Whare opposed it,
recited, in conventional terms, the legal
principles applying to the exercise of
the Court’s discretion to award costs.37 These included that
there was no general rule that costs should follow the event and that costs
are not awarded as a penalty,
but in the interests of
“compensation where that is just”.38
[65] The Court noted there was no immunity from costs for public interest
groups and this was to ensure that they were accountable
for the way they
conduct their case. The Court then traversed the factors which might result in
the award of higher than usual costs.
[66] Factors which the Court thought weighed in favour of a sizable costs
award were that:
In relation to ACP the proceedings disclosed no reasonable or relevant case.
Three of the declarations sought against ACP were outside
the jurisdiction of
the Environment Court and in respect of the fourth declaration there was no
evidential basis for the declaration
to be made.
The Court also referred to the breadth and complexity of the
proceedings.
[67] In addressing the matters raised by Te Whare in opposition, the Court noted there was no evidence that Te Whare was in receipt of a grant of legal aid, under the Legal Services Act 2011, so that was not a relevant consideration. The fact that
another party had not applied for costs against Te Whare was not
relevant to the
36 Costs Decision, above n 9.
37 At [14]-[17].
38 At [14], citing Foodstuffs (Otago Southland) Properties Ltd v Dunedin City Council (1996) 2
ELRNZ 138 (PT).
determination, and the financial circumstances of the applicant for costs was
also irrelevant. The Court acknowledged that the fact
the matter was of
considerable public interest, if the relevant resource consent conditions had
not been complied with, could not
be a factor relevant to ACP because of the
concession there was no case against ACP. The Court again noted its concern
about the
way Te Whare had drafted and conducted its proceeding and its failure
to take heed of the Court’s advice, concluding that it
was “in no
doubt Te Whare’s approach has caused ACP to incur unnecessary
costs”.
[68] The Court then decided that, in light of Te Whare’s conduct of
the case against ACP, it was appropriate to award higher
than usual costs and
awarded costs of $10,000, or approximately 60 per cent of ACP’s actual
costs.39
[69] Te Whare appeals that decision, allegedly on the following issue of
law:
Does S.285 RMA (awarding of costs as Environment Court considers reasonable)
exclude objective reasonability, including the
provisions of S.279
(strike-out of costs application if Judge considers it frivolous or vexatious or
otherwise an abuse of process)?
[70] Te Whare reiterated the points it made in the Environment Court
being, in summary, that:
(a) Te Whare was acting in the public interest in filing the case and
any mistakes made were simply because of the lack of finance
to employ a
lawyer;
(b) The case against ACP was withdrawn at an early stage;
(c) The University of Otago did not make an application for costs
when
Te Whare withdrew;
(d) ACP has considerable funding and income whereas Te Whare has been
sold and is relying on donations.
39 At [31].
[71] In none of these can I find an error of law. The Court
acknowledged the general public interest there would be in running
a case
designed to ensure that resource consent conditions were complied with.40
However, it inevitably concluded that when, as Te Whare had acknowledged,
there was no reasonable cause of action against ACP, that
factor did not carry
weight.41 While the case was withdrawn against ACP, the path to
that point had not been straight forward and ACP had incurred considerable cost
to that stage. The Court was correct in determining that the fact that another
party had not claimed costs was irrelevant;42 as was the relative
financial positions of the parties.43
[72] In addition to the above points, Te Whare referred to receiving
funding of
$5,000 from the Environmental Legal Assistance Fund and described that as
“legal aid”. However, the restrictions in the
Legal Services Act
2011 on a costs award do not apply to grants made up by the Environmental Legal
Assistance fund. Furthermore,
as was said in Queenstown and District
Historical Society v Queenstown Lakes District
Council:44
A party’s claim that its case is representative of the public interest
does not give it immunity from liability for the costs
of other parties, nor
does receipt of a grant from the Environmental Legal Assistance fund. Limits of
a party’s means and ability
to pay are not taken into account.
(citations omitted)
[73] Te Whare also questioned whether the Judge had sufficient evidence
of the costs incurred on which to make her decision, citing
Westland District
Council v Hunt.45 In that case the applicant for costs
was criticised for failing to attach invoices as evidence of the costs
incurred and a
costs award was denied.
[74] However, in the present case, invoices of legal expenses were provided on behalf of ACP and the Court did have adequate information on which to make an
award of costs.
40 At [24].
41 At [20] and [24].
42 At [22].
43 At [23].
45 Westland District Council v Hunt [2010] NZEnvC 352 at [20].
[75] I conclude therefore that the Court exercised its discretion on an
adequate factual basis and there was no error in law which
would invalidate the
decision to award $10,000 in costs.
[76] The appeal against the costs decision is therefore
dismissed.
Outcome
[77] Te Whare has been unsuccessful on all three appeals. In each case,
no error of law has been identified and in each case
the decision reached was
well within the scope of the Judge’s discretion.
[78] Costs are reserved, although applications are not
encouraged.
Solicitors:
Chapman Tripp, Wellington
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