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High Court of New Zealand Decisions |
Last Updated: 14 May 2015
IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY
CIV-2014-409-000573 [2015] NZHC 1000
BETWEEN
|
R W SUTTON AND OTHERS
Applicants
|
AND
|
CANTERBURY REGIONAL COUNCIL First Respondent
INFINITY INVESTMENT GROUP LIMITED AND ANOTHER
Second Respondents
|
Judgment: 12 May 2015
JUDGMENT OF GENDALL J (As to
Costs)
SUTTON v CANTERBURY REGIONAL COUNCIL [2015] NZHC 1000 [12 May 2015]
Background
[1] On 27 February 2015, I gave judgment in this proceeding,1
such that the applicants (the Suttons and Lone Star Farms) were largely
successful. Their application for judicial review was granted,
the decision of
the Canterbury Regional Council (the Council) in question was set aside and
matters were referred back to the Council
for a reconsideration. Costs were
reserved, and I directed the parties to file memoranda on the question if they
were unable to
agree on any issue of costs between them.2
[2] They have been unable to agree and memoranda have now been filed by
counsel as follows:
(a) Memorandum dated 18 March 2015 from counsel for the Suttons and
Lone Star Farms;
(b) Memorandum dated 25 March 2015 from counsel for the second
respondents (Infinity); and
(c) Memorandum dated 10 April 2015 from counsel for the Council.
These memoranda have now been referred to me. As no party has expressed a
wish to be heard on the matter, this decision is made based
on the material
before the Court.
[3] Counsel for the applicants, the Suttons and Lone Star has filed
submissions seeking costs on a 2B basis against the second
respondents Infinity
only in the sum of $25,671.00 plus disbursements of $6,931.41.
[4] In response, Infinity denies that it should be held liable for the
applicants’
costs, and further Infinity itself seeks costs here from the
Council.
1 Sutton v Canterbury Regional Council [2015] NZHC 313.
[5] The Council opposes any award of costs against it. This is on the
basis that it says it did not oppose the application
to this Court for judicial
review of its decision and also it gave notice it would merely abide the
decision of the Court on the
application.
Applicants’ (the Suttons’ and Lone Star’s) submissions
on costs
[6] As I have noted, the Suttons and Lone Star as the successful parties here seek costs on a 2B basis against Infinity in the sum of $25,671.00 plus disbursements of
$6,931.41. The applicants however do not seek any award of costs against the Council. They also seek leave however to recover the expenses of Ms Keri Johnston as an expert witness. These expenses are a disbursement that requires the approval of the Court under r 14.12(2)(a)(i), not being a disbursement listed in r 14.12(1)(b).3
Recovery of this witness expense is sought on the basis that it is said this
evidence was necessary to enable the Court to deal with
the issue before it, and
the costs are reasonable.
[7] Counsel for the applicants has submitted the following calculation
of their costs calculated on a 2B basis and disbursements:
Costs
|
||||
|
Daily rate
|
$1,990.00
|
||
Step
|
Description
|
Days
|
Amount
|
|
1
|
Commencement of proceeding
|
3.0
|
$5,970
|
|
11
|
Filing memorandum for case management
|
0.4
|
$796
|
|
30
|
Preparation of applicants’ affidavits
|
2.5
|
$4,975
|
|
31
|
Preparation of common bundle etc (applicant)
|
2.5
|
$4,975
|
|
33
|
Preparation for hearing
|
3.0
|
$5,970
|
|
34
|
Appearance at hearing (including junior)
|
1.5
|
$2,985
|
|
Costs Total
|
$25,671.00
|
|||
Disbursements
|
||||
Description
|
Amount
|
|||
Filing fee
|
$540.00
|
|||
Scheduling fee
|
$640.00
|
|||
Hearing fee
|
$640.00
|
|||
Ms Keri Johnston’s invoices as expert (copies attached to
memorandum)
|
$5,111.41
|
|||
Disbursements Total
|
$6,931.41
|
|||
Total (costs and disbursements)
|
$32,602.41
|
3 Progressive Enterprises Ltd v North Shore City Council [2005] NZHC 475; (2005) 17 PRNZ 919 (HC).
Second respondents’ (Infinity’s) submissions on
costs
[8] As I have noted, Infinity seeks costs from the Council here and
also an order that it Infinity is not to pay the applicants’
costs.
[9] Infinity relies upon r 14.14 in particular, which states that the costs between unsuccessful respondents are borne jointly and severally. Counsel also cites the decision of the Court of Appeal in Lane Group Ltd v DI & L Patterson Ltd, which ruled that decisions should be based on an assessment of the “overall justice” of the case.4 There is no general rule as to how the costs are to be weighed between the
parties.5
[10] It is submitted that all of Infinity’s actions in
this matter have been undertaken in reliance on information
originally
supplied to it by the Council and the incorrect processing of its resource
consent on the basis of that information. It
is accordingly suggested that this
is a matter where the overall justice of the case would not be served by
allowing Infinity to
suffer further for what are said to be the Council’s
mistakes.
[11] On this, counsel for Infinity also cites Barrett v Wellington
City Council, where Chisholm J made an order granting costs to the second
and third defendants in a judicial review case which is suggested as
similar to
the present case.6 In Barrett Chisholm J focused on the fact
that a decision to notify is a decision for the Council to make and it is the
Council’s responsibility
to comply with the notification provisions in the
Resource Management Act 1991 (the RMA). His Honour held:7
... responsibility for that outcome must rest squarely with the first
defendant. The second/third defendants were parties to the review
process
because they were parties affected, not because they carried responsibility in
some way or other for the Council's decision
not to
notify.
4 Lane Group Ltd v DI & L Patterson Ltd [2001] 1 NZLR 129, (1999) 13 PRNZ 509 (CA) at [90]
per Tipping J.
5 At [85].
6 Barrett v Wellington City Council [2000] NZRMA 481.
[12] In deciding whether the Council should be responsible for the costs of
the applicants for resource consent, Chisholm J further
stated:8
First, the fact that the second/third defendants sought to uphold the
Council's decision should not count against them. Given their
expenditure on the
complex running into many millions of dollars, it is not at all surprising that
they attempted to support the
Council's decision. Secondly, while the first
defendant now claims that if it had been aware that it might have to pay the
second/third
defendants' costs it would have more actively discouraged the
second/third defendants from incurring significant costs; the reality
was that
it was always vulnerable to an order for costs in favour of the second/third
defendants. Thirdly, I do not accept that shortcomings
in the developer's
assessment of effects has any direct bearing on the Council's decision not to
notify. Fourthly, the fact that
the second defendant might be an experienced
property manager cannot alter the fact that it was the Council's decision which
gave
rise to this proceeding.
[13] In the present case, Infinity considers that the Council should be
liable for all costs in this matter because:
(a) the Council had a duty to keep its records correctly and to ensure
that all resource consents to take water were correctly
recorded;
(b) as set out at [59] of the decision, the Council did not deny that
in this instance it had not fulfilled this duty;
(c) Infinity was entitled to rely on information provided by the
Council in relation to its plans and resource consents as true
and
correct;
(d) Infinity was likewise entitled to rely on the Council processing
their application using correct information in relation
to its plans and
resource consents;
(e) the Council had a duty to comply with the provisions of the RMA as
they applied to notification and as they applied to the
substantive decision
made; and
(f) until the date of the hearing, the Council never acknowledged by affidavit, memorandum or otherwise, that it accepted that the
Davenport Holdings Limited and Montara Properties Limited resource consents
meant that there was less than 93 l/s available to Infinity
as part of the
‘A band’. Although the Council sent a copy of Ms Johnston’s
report to Infinity on 19 January 2015
setting out her concerns about the
Davenport Holdings Limited entry in the database and the lack of the Montara
Properties Limited
entry in the database, the Council did not acknowledge that
it should have addressed those matters in the way Ms Johnston suggested.
Infinity made significant investment decisions on the basis of the
Council’s position that 93 l/s water was available as part
of the ‘A
band allocation’.
[14] In seeking costs from the Council here, counsel for Infinity has drafted
the following calculation of its costs (similarly on
a 2B basis):
Costs
|
|||
|
Daily rate
|
$1,990.00
|
|
Step
|
Description
|
Days
|
Amount
|
2
|
Commencement of defence by defendant
|
2.0
|
$3,980
|
28
|
Obtaining judgment without appearance
|
0.3
|
$597
|
29
|
Sealing order or judgment (in respect of change of party to
Pamela Jane Higgins following issue of probate)
|
0.2
|
$398
|
30
|
Plaintiff's or defendant's preparation of briefs or affidavits
|
2.5
|
$4,975
|
32
|
Defendant's preparation of list of issues, authorities, and common
bundle
|
2.0
|
$3,980
|
33
|
Preparation for hearing
|
3.0
|
$5,970
|
34
|
Appearance at hearing for sole or principal counsel
|
1.0
|
$1,990
|
35
|
Second and subsequent counsel if allowed by court
|
0.5
|
$995
|
Costs Total
|
$22,885.00
|
[15] Finally, in their letter addressed to Mr Maw counsel for the
Council, counsel for Infinity advises that:
Copies of the invoices relating to the work carried out by Tom Heller and
Brett Giddens will also be forwarded to you for payment
by the Regional
Council.
[16] The Court has not been provided with these invoices
however.
First Respondent’s (the Council’s) reply submissions on
costs
[17] As to this claim for costs by Infinity against the Council, in reliance on Beach Road Preservation Society v Whangarei District Council, counsel for the Council, Mr Maw, submits that Infinity should not be awarded costs in its favour, because it
was unsuccessful in this proceeding.9 In Beach Road
Preservation Society Chambers J considered the issue of costs following a
successful application for judicial review brought by the first applicant in
respect of a decision of the first respondent (the Whangarei District Council)
granting resource consent to the second respondent,
a Mr Wilkinson.
[18] Chambers J observed that both parties had adopted a position that
was wrong in law, and proceeded to expose their misunderstandings
in the express
hope of clarifying the philosophy of the new costs regime under the High Court
Amendment Rules 1999 for the benefit
of the profession.10
[19] On all of this, His Honour concluded:11
On a costs application we are not concerned with how the original decision
under attack came to be made. What we are concerned with
is the litigation
itself. The society brought a claim correctly identifying the council and Mr
Wilkinson as respondents. On being
served with the notice of proceeding and
statement of claim, the council and Mr Wilkinson had an election: to defend the
proceeding
or not. Both chose to defend the proceeding. I concluded that the
proceeding was well brought. The society is entitled to costs.
Both respondents
must share responsibility for those costs because, and only because, each
decided to defend the proceeding, wrongly,
as it turned out. That is why they
must pay costs to the society. It is irrelevant how the land came to be zoned as
it was or how
the resource consent decision came to be made. Parties pay costs
because they have elected to bring or defend proceedings and have
adopted a
stance in those proceedings which a Court has found to be
unjustified.
[20] Mr Maw however contrasts the position of the Council in the present proceeding with that of the council in Beach Road Preservation Society. Upon being served with the proceeding here, the Council elected not to support or oppose the application but simply to abide the decision of the Court.12 The Council communicated this decision to the parties by memorandum dated 24 September
2014, and proceeded to make documents available to both parties by way of
informal
disclosure. And, during the hearing, counsel for the Council did not
adopt a position
9 Beach Road Preservation Society v Whangarei District Council [2001] NZHC 811; (2001) 16 PRNZ 13 (HC).
11 At [21].
12 Sutton v Canterbury Regional Council [2015] NZHC 313 at [7].
in respect of the proceeding. Rather, counsel assisted the Court by answering
questions put to him, and clarified factual matters
which arose during the
hearing.
[21] As to the reasons adduced by counsel for Infinity supporting its
view the Council should be liable for all costs in this
proceeding, Mr Maw
submits that these reasons are concerned only with how the original,
successfully reviewed, decision came to be
made. They do not relate to the
litigation itself. Mr Maw then suggests that the Council did not adopt an
unjustified position,
nor fail to act reasonably in relation to the conduct of
the judicial review proceedings. He submits that an award of costs against
the
Council in favour of Infinity would be tantamount to punishing the Council for
how the decision under challenge came to be made
which is wrong.
[22] Although Chisholm J resorted to the Court’s general discretion to award costs in favour of an unsuccessful party in Barrett v Wellington City Council, Mr Maw goes on to distinguish Barrett on the facts.13 In Barrett, the respondent council elected to actively defend judicial review proceedings brought against its decision not to notify an application for resource consent. The Council was therefore unsuccessful in its defence of the proceedings, and was itself an unsuccessful party. In contrast, the Council in the present case signalled at the outset of the proceeding that it would abide the Court’s decision. It took no active role in the proceeding and
cannot, in Mr Maw’s submission, be described as an unsuccessful
party.
[23] Mr Maw submits that the general principle of costs should apply here, and the Council (as a party who did not “fail with respect to a proceeding” because it did not argue a position) should not be held liable for the costs of Infinity who did not “succeed” in terms of r 14.2(a). Further, Mr Maw relies upon the judgment of this
Court in Wang v North Shore District Court, where Duffy J
held:14
The second defendant was not obliged to defend the judicial review but chose
to do so. He cannot now complain that his defence should
lead to an award of
costs.
And he contends therefore that, as Infinity was not obliged to defend the
judicial review proceedings, but chose to do so, accordingly,
an award of costs
here in favour
13 Barrett v Wellington City Council [2000] NZRMA 481.
14 Wang v North Shore District Court [2014] NZHC 1385 at [6].
of Infinity cannot be justified.
[24] As to the applicants’ costs here, it is significant as I see it that they have not sought costs against the Council. It is true that r 14.14 states that costs between unsuccessful parties are borne jointly and severally, unless the Court otherwise directs. For the reasons set out above, however, Mr Maw submits that the Council is not an unsuccessful respondent. But, as to that submission, it is perhaps useful to consider the decision in Kawarau Jet Services Holdings Ltd v Queenstown Lakes
District Council.15 In that case, French J dismissed the
“too absolute” proposition
that a person who abides the decision of the Court can never be liable for
any costs.16
Her Honour concluded that:17
Ultimately, the task of the Court is to make an assessment of overall justice
as between the particular parties. On the facts of this
case, where the Council
made a very fundamental and serious error which necessitated the issuing of
proceedings, I consider the council
should make a contribution. However, because
it responsibly did not defend the proceeding, its liability should be limited to
20%
of the costs and disbursements, excluding the costs of the
experts.
[25] While conceding now that the Council made an error in processing
Infinity’s resource consent application, Mr Maw submits
that
Infinity’s assessment of environmental effects (AEE) had a direct
bearing on the Council’s decision to
classify the water take as a
discretionary activity, and to process the application incorrectly on a
non-notified basis. The Council
relied heavily on the information within this
AEE.
[26] Mr Maw adds that, although Infinity was entitled to rely on information provided by the Council as true and correct, Infinity was “somewhat selective” about the information it relied on. In particular, from multiple differing consent inventories, Infinity apparently chose to rely on the inventory most favourable to it
and prepared its AEE in accordance with that
inventory.
15 Kawarau Jet Services Holdings Ltd v Queenstown Lakes District Council HC Invercargill CIV-
2008-425-518, 19 May 2009.
16 At [18].
17 At [18].
[27] Ultimately, it is the Council’s position that overall justice
would not be served if costs were to be awarded against
the Council here, in
favour of either Infinity or the applicants. Further, such an award Mr Maw
maintains would be inconsistent with
the principle that, so far as possible, the
determination of costs should be predictable and expeditious.18 The
present circumstances he says do not justify a departure from the general
principle that the party who fails with respect to a
proceeding should pay costs
to the party who succeeds.
Analysis – the applicants’ claims
Costs generally
[28] The starting point is that the High Court has a discretion in relation to any matters relating to costs of a proceeding.19 The exercise of this general discretion has never been unfettered, however, and is qualified by the specific costs rules in rr 14.2-
14.10.20
[29] It is a well-established principle of costs determination that the party who fails with respect to a proceeding should pay costs to the party who succeeds.21
Further, an award of costs should reflect the complexity and significance of
the proceeding. Also, costs should be assessed
by applying the
appropriate daily recovery rate to the time considered reasonable for each step
reasonably required in relation
to the proceeding or interlocutory
application.22
[30] The applicants’ proposed table of costs (outlined at [7] above) accords with the appropriate daily recovery rates for category 2 band B proceedings as specified in Schedule 2, and with the reasonable time allocations for each step as specified in
Schedule 3.23
18 High Court Rules, r 14.2(g).
19 High Court Rules, r 14.1(1).
20 Manukau Golf Club Inc v Shoye Venture Ltd [2012] NZSC 109, [2013] 1 NZLR 285 at [7] and
[16]; Glaister v Amalgamated Dairies Ltd [2004] NZCA 10; [2004] 2 NZLR 606, (2004) 16 PRNZ 1047 (CA) at [9], [21]-[24] and [28]; and Mansfield Drycleaners Ltd v Quinny’s Drycleaning (Dentice Drycleaning Upper Hutt) Ltd [2002] NZCA 277; (2002) 16 PRNZ 662 (CA) at [27].
21 High Court Rules, r 14.2(a).
22 Rule 14.2(b) and (c).
23 Rules 14.4(a) and 14.5(1)(a).
[31] In accordance with the general principles relating to the
determination of costs, as outlined in r 14.2, the applicants are
entitled to
costs of $25,671.00. I will address shortly who is to be required to meet these
costs.
Disbursements – court fees
[32] To be recoverable as a disbursement, an item must meet the r 14.12(1)
definitions, and will then be recoverable only to the
extent that it was
“reasonably necessary”, “reasonable in amount” and is
not held by the Court to be “disproportionate
in the circumstances of the
proceeding”.24
[33] The applicants are entitled to disbursements for filing, scheduling
and hearing fees, as these are fees of court specified
in r 14.12(1)(b) which
meet the requirements of r 14.12(2) and (3).
Disbursements – the expert witness fee
[34] Expert witness fees and expenses are a disbursement.25 However, as the applicants note, they must be approved by the Court under r 14.12(2)(a)(i), as they are not listed in r 14.12(1)(b). The ultimate issue for the Court is whether the r
14.12(2) and (3) criteria are satisfied.26
[35] Ms Johnston is a consulting senior employee of Irricon Resource
Solutions (IRS). The attached invoices from IRS show that
Ms Johnston was
retained by the applicants to:
(a) carry out an assessment on reliability on existing users resulting
from the grant of the Foveran consent for additional
primary water resource
allocation;
(b) prepare and amend draft affidavits for these judicial
review proceedings; and
24 Rules 14.12(2)(c)-(d) and 14.12(3).
25 Progressive Enterprises Ltd v North Shore City Council, above n 3, at [22]-[26]
26 Air New Zealand Ltd v Commerce Commission [2007] NZCA 27; [2007] 2 NZLR 494, (2007) 18 PRNZ 406 (CA)
at [47].
(c) read and provide comments on Infinity’s
affidavits.
[36] The invoices include fees for the copying and printing of Ms
Johnston’s
affidavits, as well as postage and courier costs between Timaru and
Oamaru.
[37] In my decision, I noted that:27
... before me Mr Maw, counsel for the Council, confirmed that all these
calculations on which the Council relied at the time clearly
contained a
significant error, an error which was now acknowledged. Ms Johnston, a
consultant to the applicants, had as recently
as November 2014 undertaken an
inventory review report for the Council detailing the total consented water take
(including Infinity’s
93 L/s) from the Hakataramea River and its
tributaries. This showed clearly a total take of 565 L/s, thus exceeding the
allowable
take by some 65 L/s. The Council accepts now this was always the
correct position and before me there was no real dispute of any
kind regarding
this conclusion. This was despite the fact that Ms Johnston’s inventory
review report had been circulated
to all parties at the end of January
2015.
[38] In calculating the true availability of primary resource consent allocations, Ms Johnston’s evidence was crucial in revealing the Council’s error, and in assessing the impact that the challenged grant of consent (the Foveran consent) had on reliability for existing users, including the applicants. In my view these expert witness’ expenses were specific to and reasonably necessary for the conduct of the proceeding, reasonable in amount ($5,111.41) and proportionate in the circumstances
of the proceeding.28 I approve this as a disbursement, pursuant
to r 14.12(2)(a)(i).
The applicants are clearly entitled to recover expenditure for the time Ms
Johnston spent in assessing the impact on reliability of
the Foveran consent, in
preparing her expert evidence, and in critiquing Infinity’s affidavits so
as to assist the applicants
to understand the issues.29
[39] Generally, office overheads usually absorbed by a party’s
solicitors (such as
online legal research) are not recoverable.30 However, office
expenses that were
“necessary and specific to the litigation” (including
photocopying, binding, and
27 Sutton v Canterbury Regional Council, above n 1, at [23].
28 High Court Rules, r 14.12(2) and (3).
29 Air New Zealand Ltd v Commerce Commission, above n 26, at [62].
courier charges) have been allowed in
several decisions of this Court.31 The office overheads listed in
Ms Johnston’s invoices – printing and courier fees –
are claimable in
the present case, as they were both necessary and specific to
the litigation.32
[40] As I have found that Ms Johnston’s fees and expenses were both
reasonable and necessarily incurred, they are recoverable
in full.33
In addition to the listed court fees, the applicants are therefore
entitled to recover Ms Johnston’s fees and expenses as disbursements,
making a total sum for disbursements of $6931.41.
Payment of the applicants’ costs
[41] Infinity, as the unsuccessful party who actively resisted
the applicants’ judicial review application here
and argued their
position in full, must be the primary party liable for the applicants’
costs. And because the Council elected
not to oppose and participate in these
proceedings, it would be unjust, in my view, to make it jointly and severally
liable for the
full amount of the applicants’
costs.34
[42] The Council however clearly made mistakes in its original decision and must be seen as responsible in part for the outcome here. Therefore, to achieve overall justice between the parties in the circumstances of this case, I consider it necessary to apportion the applicants’ costs here in the same way as did French J in Kawarau Jet Services Holdings. In this case, as in the proceedings before French J, the Council made “a very fundamental and serious error which necessitated the issuing
of proceedings”.35 Accordingly, and despite the comments
of Chambers J on the
basis of shared responsibility for costs in Beach Road Preservation
Society, as I see
it the Council should contribute in some way to the applicants’
costs.
31 Mawhinney v Waitakere City Council HC Auckland CIV-1999-404-1850, 26 September 2007 at [12]; followed in Liu v Ward HC Palmerston North CIV-2010-454-48, 2 August 2011 at [19]; and Bryant v Satara Co-operative Group Ltd HC Napier CIV-2011-441-715, 30 January 2012 at [25].
32 Liu v Ward, above n 31, at [30].
33 Air New Zealand Ltd v Commerce Commission, above n 26, at [47]-[48] and [62]; Scandle v Far
North District Council HC Whangarei CIV-2008-488-203, 31 March 2011 at [34].
34 Kawarau Jet Services Holdings Ltd v Queenstown Lakes District Council, above n 15, at [17].
[43] As to quantum, I must note and weigh into the
consideration here the Council’s responsible decision not
to oppose the
application in this proceeding, and their apparent reliance earlier on the
erroneous AEE which Infinity had compiled
and provided to the Council. As with
Kawarau Jet Services Holdings, I consider here the Council’s
liability should be limited and a contribution of 20 per cent in my view would
be appropriate.
But, unlike the decision in Kawarau Jet Services Holdings
I do include the expert evidence fees and expenses ($5,111.41), together
with the other disbursements in the Council’s proportionate
liability
here. Noting matters raised by French J in Kawarau Jet Services
Holdings, the real protagonist in these present proceedings I find was
Infinity. But clearly the expert Ms Johnston’s report and her
overall
contribution here assisted in correcting the earlier errors made by the Council
and establishing the proper position. As
such, in assessing the overall justice
in this case, the Council should meet a part of this disbursement.
[44] In coming to this conclusion, I have not overlooked concerns that
might exist about Infinity’s ability to meet costs.
However, as a matter
of principle that cannot be a reason for making the Council jointly and
severally liable as if it
were a guarantor.36
Outcome as to the applicants’ costs and disbursements
application
[45] Accordingly, as to the applicants here they are entitled to recover
their costs and disbursements as claimed and the following
orders are now
made:
(a) The Council is to pay 20 per cent of the applicants’ total 2B costs
and disbursements, being the sum of $6520.48.
(b) Infinity is to pay 80 per cent of the applicants’ total 2B costs
and disbursements, being the sum of $26,081.93.
Analysis – Infinity’s costs claim
[46] On this aspect, Mr Maw submits that an award of costs against the Council in favour of Infinity here would effectively punish the Council for how the original
decision under challenge came to be made, and have little to do with the
present litigation. On this costs aspect, I accept this
submission. As
Chambers J stated in Beach Road Preservation Society, the costs regime
focuses not on how the original decision under attack came to be made, but on
the litigation itself. Indeed,
his Honour held that:37
It is irrelevant ... how the resource consent decision came to be made.
Parties pay costs because they have elected to bring or defend
proceedings and
have adopted a stance in those proceedings which a Court has found to be
unjustified.
[47] It is Infinity which has chosen to defend the applicants’ judicial review proceedings here. In contrast to the respective council respondents in Beach Road Preservation Society and Barrett v Wellington City Council, the Council here elected not to defend the proceeding. From the inception of these proceedings, the Council
indicated that it would abide the decision of this Court.38
Moreover, as I have noted
above, counsel for the Council commendably assisted this Court throughout the
proceedings.
[48] It is clear too that Infinity was not obliged to oppose the judicial
review proceedings, but chose to actively do so. Infinity
cannot now complain
that its actions which were unsuccessful should lead to an award of costs in
its favour.39
[49] In light of the reasoning and outcomes in Beach Road Preservation Society and Wang v North Shore District Court, and an assessment of the overall justice of the case here, I consider that the Council should not be obliged to pay costs to
Infinity
here.40
37 Beach Road Preservation Society v Whangarei District Council, above n 9, at [21].
38 Sutton v Canterbury Regional Council, above n 12, at [7].
39 Wang v North Shore District Court, above n 14, at [6].
40 Beach Road Preservation Society v Whangarei District Council, above n 9; Wang v North Shore
District Court, above n 14.
Outcome as to Infinity’s costs application
[50] I dismiss the application by Infinity seeking an order for the Council
to meet
Infinity’s costs here.
...................................................
Gendall J
Solicitors:
Brandts-Giesen McCormack, Rangiora
Pru Steven QC, Christchurch
Wynn Williams, Christchurch
R J Somerville QC, Dunedin
Greenwood Roche Chisnall, Christchurch
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