[2026] VSC 189
General information, not legal advice.
Supreme Court of Victoria
2026-04-02
Harris J
Original judgment source is linked above.
COSTS - Costs in proceeding involving claim for compensation under Planning and Environment Act 1987 (Vic) - Criteria under 91(1) of the Land Acquisition and Compensation Act 1986 (Vic) - Apportionment of costs based on success on individual issues.
INTEREST - Interest on award of costs under s 60(1) of the Supreme Court Act 1986 (Vic) - 'Good cause' to not award interest - Interest on compensation sum where Authority made no offer of compensation until late in the proceeding - Suspension or disallowance of interest based on applicant's conduct - Applicant applied for leave to file further evidence causing adjournment - Trial date vacated and relisted months later - Interest disallowed for part of the period during which trial adjourned.
We accept that the position of a claimant in proceedings under the Act is not that of an ordinary litigant and that the starting point for the exercise of the Court's discretion as to costs is that the dispossessed owner should recover the costs of making the claim. The discretion as to costs in compensation proceedings is tilted in favour of the claimant. [2]
the extent to which, in the opinion of the ... Court, the proceedings have arisen from, or been affected by -
(i) unreasonable conduct on the part of the claimant or the Authority; or
...
(iv) an unduly depressed offer by the Authority.
With some hesitation I think that the picture that emerges from the course of authority is that what is the relevant event for the purposes of the rule is primarily to be determined by reference to the outcome of the litigation and whether or not the plaintiff has obtained judgment in his favour and that that is so even if the defendant has defeated some claims and has succeeded on others, or has succeeded on some issues. I think that emerges from the history of the rule where even though the event was capable of referring to particular issues such that the defendant might be entitled to costs referable to the issues upon which he succeeded, nonetheless, a plaintiff who obtained judgment was entitled to his general costs of the proceedings.[16]
A court will be reluctant to apportion costs between different issues depending on success or failure on those issues where it is likely to be difficult, if not impossible, to allocate items of costs between the different issues. Accordingly, the severability of the issues is an important factor. The issues should be 'sufficiently distinct' or 'separable'. It is relevant to consider whether the issues on which a party failed were major issues in the action which involved substantial questions of fact and law, or substantially increased the costs of the action. It might be relevant to consider whether a party has succeeded on a 'technicality' but has not been 'generally successful'. [17]
In keeping with the overall purpose of s 60, when determining whether a 'good cause' exists, the discretion is not 'intended to be directed to penalising the plaintiff but to alleviating the defendant in a proper case'. However, the 'good cause' exception should not be seen as diminishing a defendant's culpability or wrongdoing. It instead serves only to protect the defendant against any injustice.
Delay on the part of a plaintiff may be relevant to the question of whether there is good cause to depart from the period of time specified in s 60. The court must consider 'whether the plaintiff's delay, such as it is in a given case, is seen as working such injustice, were the plaintiff to be allowed interest for the whole of the period available' under the legislative provision.[34]
(a) It was reasonable for him to seek an adjournment for the purposes of obtaining further evidence on hydrology and cultural heritage issues, as the relevance and significance of the evidence had been made apparent by that time by the approach taken by the valuation experts.
(b) The adjournment of the trial had no impact on the incurring of interest, because the Authority had at the time that the trial was adjourned in September 2024 made only a nil offer. As a consequence, there was at the time no offer capable of acceptance which could have stopped the accrual of interest, even if the trial had not been adjourned.
I also accept that there is some force in the claimants' submission that the amount of interest payable is largely in the hands of an acquiring authority. If comprehensive and well-directed offers are made by authorities consistently with their obligations as model litigants, and advances of compensation are made at appropriate times, minimal interest will accrue. If offers and advances of compensation are not made, the interest that can accrue can be substantial.[35]
[1] Barrett v Head, Transport for Victoria [2026] VSC 149 (Reasons).
[2] [2011] VSCA 434, [173] (Warren CJ, Tate JA and Emerton AJA) (citations omitted). See also Murdesk Investments Pty Ltd v Roads Corporation [2007] VSC 175; (2007) 155 LGERA 13, 19 [23] (Osborn J) and Kingston v Head, Transport for Victoria (No 2) [2024] VSC 231, [97] (Quigley J).
[3] Authority's Outline of Submissions dated 30 March 2026, [3].
[4] Respondent's Further Amended Particulars of Offer dated 14 March 2025
[5] Affidavit of Christopher Nathaniel Cantor sworn 30 March 2026 (Cantor Affidavit) [4(l)-(m)].
[6] As observed at [94] of the Reasons.
[11] Authority's Outline of Submissions, [3].
[12] Authority's Outline of Submissions, [6]-[7].
[13] Authority's Outline of Submissions, [7] referring to the observation in the Joint Statement of Valuation Experts dated 28 February 2025, p 4, that the Paper Road was noted as a 'critical assumption/issue'.
[14] Thurin v Krongold Constructions (Aust) Pty Ltd (No 2) [2022] VSCA 252, [12] (McLeish, Niall and Walker JJA).
[15] Re Koroneos [2021] VSC 734, [5] (McMillan J), citing Priestley v Priestley (No 2) [2016] NSWSC 1259, [49] (White J).
[16] [2016] NSWSC 1259, [49] (White J).
[17] [2025] VSC 132, [9] (citations omitted).
[20] Expert Report of Charmaine Dunstan, dated 9 May 2024.
[22] Authority's Outline of Submissions, [3(c)].
[23] Order of Harris J in Barrett v Head, Transport for Victoria (Supreme Court of Victoria, S ECI 2023 02648, 3 February 2025).
[24] Authority's Outline of Submissions dated 21 May 2025 and Applicant's Outline of Submissions dated 28 May 2025.
[25] Authority's Outline of Submissions dated 21 May 2025, [3], [11].
[26] Authority's Outline of Submissions dated 21 May 2025, [16].
[27] Authority's Outline of Submissions, [13]. The Authority notes that the new ss 104B and 104C of the Planning and Environment Act, which took effect from 25 November 2025, will impact on this position.
[28] Order 1 of Order of JR McCann in Barrett v Head, Transport for Victoria (Supreme Court of Victoria, S ECI 2023 02648, 27 August 2024). The orders were made by consent and included other orders for preparation for trial.
[29] Affidavit of Julie Maree Colsell sworn 30 March 2026 (Colsell Affidavit), [5].
[30] Colsell Affidavit, [6]. See also Authority's Outline of Submissions [9]-[10].
[31] Authority's Outline of Submissions, [16].
[32] Colsell Affidavit [18]-[20]; Authority's Outline of Submissions [9]-[11].
[33] (2022) 67 VR 1 (Elliott J) (Cargill (No 30)).
[34] Cargill (No 30), 5 [10]-[11] (citations omitted).
[35] (2017) 228 LGERA 71, 108 [125].
[36] On 31 July 2025: Cantor Affidavit, [4(n)].
[37] The Authority's evidence was that it considered it necessary to consider the valuation expert evidence before making an offer. See Colsell Affidavit, [21]. I do not accept that this is the case, since the Planning and Environment Act compensation provisions, including those dispute determination provisions of the Land Acquisition and Compensation Act applied by s 105 of the Planning and Environment Act, quite plainly contemplate the Authority making an offer of compensation without the need for any litigation before the Victorian Civil and Administrative Tribunal or the Supreme Court and thus without preparation of expert reports of the kinds used in this proceeding. However the fact that this was the Authority's position does suggest that once the valuation and all other expert evidence had been finalised for a trial, it would have made an offer and had that been in October 2024, an offer could have been expected at that time.
[38] Cargill (No 30), 5 [11] (Elliott J).
[39] Order of Harris J in Barrett v Head, Transport for Victoria (Supreme Court of Victoria, S ECI 2023 02648, 14 October 2024).
Barrett
Head, Transport for Victoria [No 2] [2026] VSC 189
(2007) 155 LGERA 13
(2022) 67 VR 1
(2017) 228 LGERA 71