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[2010] VCAT 1230
Victorian Civil and Administrative Tribunal
2010-08-17
Original judgment source is linked above.
Costs application; s 80(1) Land Acquisition and Compensation Act 1986; s 155 Water Act ; offer; ; Scale "D" County Court Scale of Costs; appropriateness of engaging senior counsel for proceedings; Calculation of interest.
Coryule Pty Ltd v Westernport Regional Water Authority (No 8) (Land Valuation) [2010] VCAT 1230
Mr Michael Roberts, barrister, appeared on the instructions of Best Hooper solicitors for the applicant company. He presented written and oral submissions.
Mr Ragu Appudurai, solicitor of the firm of Russell Kennedy solicitors appeared for the respondent authority. He made oral submissions.
A claimant's application under s 80(1) of the Land Acquisition and Compensation Act 1986 (LAC Act) for determination of a disputed claim in relation to compensation.
... I am instructed to offer the sum of $33,500.00 (in addition to the sum of $12,597.80 already paid to your client) in full and final settlement of the compensation for legal expenses ordered by the tribunal.
The sum of $33,500.00 will be paid within 28 days of the receipt of written acceptance of this offer on behalf of your client.
This offer will remain open to be accepted until cob of 2 October 2009.
The corporation otherwise refers to and relies upon the content of my letter to you of 19 January 2009.
I am instructed to give you notice that in the event that your client rejects this offer and the matter proceeds to hearing on 30 October 2009, this letter will be produced on the question of costs with an application being made that your client pay the corporation's costs on an indemnity basis on the date of this letter in accordance with the principles set out in Calderbank v Calderbank [1975] 3 All ER 333.
... unless the Tribunal orders otherwise, a party who made an offer [where the section applies] is entitled to an order that the party who did not accept the offer pay all costs incurred by the offering party after the offer was made.
(3) In determining whether its orders are or are not more favourable to a party than an offer, the Tribunal-
(a) must take into account any costs it would have ordered on the date the offer was made; and
(b) must disregard any interest or costs it ordered in respect of any period after the date the offer was received.
38 The exact figure, that I have rounded to $25,000.00, was $24,944.20. Coryule claims interest thereon pursuant to ss 52 and 56 of the Land Acquisition and Compensation Act 1986 in accordance with the prescribed rate pursuant to s 2 of the Penalty Interest Rates Act 1983 at a rate of 12% p.a.[12] from 20 October 2007 until 31 August 2008 and at 11% p.a. from 9 September 2008 to 16 December 2009[13]. Those two figures are $2,598.58 and $3,549.81 respectively giving a total of $6,148.39. Reverting to round figures, $25,000 plus $6,000.00 equals $31,000.00 which, as is pointed out for the authority, is less than $33,500.00. For the purpose of this comparison the rounded figure for interest is taken at its highest notwithstanding that the authority submits that a lower figure (if anything at all) should be rewarded in relation to interest. The point here, from the point of view of the authority, is that including all that Coryule claims the figure of $33,500.00 is not exceeded.
[1] This expression derives from the case of Calderbank v Calderbank [1975] 3 All ER 333; [1975] 3 WLR 586; [1976] Fam 93.
[2] Coryule Pty Ltd v Westernport Regional Water Authority (No 7) (Land Valuation) [2009] VCAT 2504.
[3] At the relevant time I was sitting with my then colleague Mr Ian Robinson, Valuer Member.
[5] [1991] VicRp 90; [1991] 2 VR 534,541-2.
[6] [1994] VicRp 13; [1994] 1 VR 210, 213.
[7] (1979) 21 SASR 108, 134-5; 45 LGRA 127, 149-150.
[12] Section 52 of the LAC Act provides:
(1) The Governor in Council may from time to time, by Order published in the Government Gazette, determine the rate of interest to be paid in respect of unpaid compensation under this Act.
(2) The rate of interest determined by the Governor in Council must not exceed the rate for the time being fixed under section 2 of the Penalty Interest Rates Act 1983.
Coryule points to the Government Gazette of 17 February 1988 for the relevant Order.
[13] I am aware that this date is three months later than 16 September 2009 but this discrepancy is not significant for the comparison I am making here.
Coryule Pty Ltd
Westernport Regional Water Authority
(1979) 21 SASR 108
(2005) 13 VR 435
(2007) 157 LGERA 1
(2006) 150 FCR 319