[2024] SACAT 69
General information, not legal advice.
SA Civil and Administrative Tribunal
2024-08-30
Member Rugless, Member Ward, Member Files
Original judgment source is linked above.
The applicant opposed the application for costs and submitted that there was no proper basis to depart from the starting point that each party bear their own costs (s 57(1) of the SACAT Act). The applicant also argued that there ought to be a special consideration regarding no costs being ordered given the nature of the matter, as sexual harassment claims have historically been heard in 'no costs' jurisdictions to avoid discouraging meritorious complaints and exposing complainants to unreasonable costs burdens. The applicant further submitted that her complaint was not lacking in merit, nor had it been commenced with the knowledge that the allegations were false. Lastly, the applicant submitted that viewing the CCTV footage would have been psychologically triggering for her and that the footage had been viewed by her solicitors and expert witness and would not have altered her decision to proceed with the complaint.
Held, ordering costs of the proceedings in favour of the second respondent against the complainant for part of the proceedings:
Administrative Tribunals - Procedure - Statutory powers - Order for costs - Ordinary position that parties are to bear their own costs - Effect of party conduct on entitlement to costs
SACAT is not a 'no costs' jurisdiction although the usual position is that parties are to bear their own costs - Discretion to award costs enlivened - Discretion to award costs in appropriate circumstances - No need to establish exceptional circumstances - No special considerations about costs in sexual harassment proceedings
Administrative Decisions Tribunals Act 1997 s 110
Equal Opportunity Act 1984 (SA) ss 26, 87, 91
South Australian Employment Tribunal Rules 2017 r 11
South Australian Civil and Administrative Tribunal Rules 2014 r 101
ACT Civil and Administrative Tribunal Act 2008 s 48
Ball v Morgan [2001] FMCA 127
Burns v Corbett [2018] HCA 15
Clarke v Veterinary Surgeons Board of South Australia (No 2) [2021] SACAT 100
CPD Holdings Pty Ltd t/as The Bathroom Exchange v Baguley [2015] NSWCATAP 21
Creek v Cairns Post Pty Ltd [2001] FCA 1150
Fetherson v Peninsula Health (No 2) [2004] FCA 594
GKZ v Department of Child Protection (No 3) [2022] SACAT 76
GKZ v Department of Child Protection [2022] SACAT 29
Gluyas v Commonwealth (No 2) [2004] FMCA 359
Hanna v City of Marion & Anor [2020] SACAT 21
Hinder v Clayton [2020] SAET 11
Hoare v Registrar of Firearms [2021] SACAT 65
Hollingdale v North Coast Area Health Service (No 2) [2006] FMCA 585,
Jacomb v Australian Municipal Administrative Clerical & Services Union [2004] FCA 1600
Li v Minister for Immigration & Multicultural Affairs [2001] FCA 1414
Maurici v Registrar of Firearms [2022] SACAT 61
McKenzie v Department of Urban Services [2001] FMCA 20; (2001) 163 FLR 133
Minns v State of NSW (No 2) [2002] FMCA 197
Murtough v NSW Bar Association [2008] NSWADT 166
Nash v Revenue SA [2023] SACAT 90
Nguyen v Ross & Anor [2021] SACAT 112
Oshlack v Richmond River Council [1998] HCA 11; (1998) 193 CLR 72
Paramasivam v Wheeler [2001] FCA 231
Ragless v Stokes (No 2) [2016] SAEOT 5
Ramstrom v Baldino [2014] SAEOT 4
Re HWS [2018] SACAT 39
Rispoli v Merck Sharpe & Dohme (Australia) Pty Ltd (No 2) [2003] FMCA 516
Ritson v South Australia Police [2019] SAET 205
Ryan v The Presbytery of Wide Bay Sunshine Coast [2001] FMCA 12
Sastre v Commissioner for Equal Opportunity and TAFE SA [2018] SAET 147
Savage v Vili's Cakes [2019] SAET 239
South Australian Housing Trust v Brady & Milera [2018] SACAT 2
Steel v SA Ambulance Service [2020] SACAT 86
Stratford v District Council of Tumby Bay [2020] SACAT 54
Tadawan v South Australia [2001] FMCA 25
Tate v Rafin [2000] FCA 1582
Tronnolone v Edwards & Bryan [2016] SACAT 27
Yelda v Sydney Water Corporation; Yelda v Vitality Works Australia Pty Ltd [2021] NSWCATAD 177
Ms K Clarke SC on instructions from Wearing Blair Solicitors for the applicant
Mr P D'Assumpcao on instructions from Mr N Kernahan of Johnston Withers for the first respondent
Mr M Bergander-Florek, HWL Ebsworth Lawyers, for the second respondent
Additional written submissions - Dr Nguyen's pre-hearing conduct re the CCTV footage
Principles regarding the award of costs in SACAT
[11] In previous costs decisions, the Tribunal has made and/or confirmed the following general propositions or observations which can guide the determination of costs applications under ss 57 and 58 (although each case must be determined on its merits and some of these matters may not arise in a particular case):
It must be borne in mind that the overarching principles are that parties bear their own costs unless it is appropriate for the Tribunal to make an order. None of the factors that must be considered overrides the general proposition. > > The main objectives of the Tribunal are set out in s 8 of the SACAT Act. Whether a costs order is made is to be informed by these objectives and how a costs order will reflect or further those objectives. > > ...The Tribunal's ability to take into account any other relevant matter connotes the wide discretion in the Tribunal to consider a wide range of facts, circumstances and behaviours when determining what is appropriate in making an order. (Emphasis added)
...The broad scope of "appropriateness" permits consideration of the nature of the proceedings. The Tribunal has diverse jurisdiction and increasingly so following the recent conferral of new review jurisdictions. In some of its areas of work, the nature of the proceedings and the circumstances that bring the parties to the Tribunal may lend themselves more than others to a ready finding that it is appropriate to make an award of costs. In the performance of original jurisdiction hearings of matters relating to housing, and to the guardianship, administration and mental health hearings that currently make up the volume of the matters heard by the Tribunal, the case for maintaining accessibility to the Tribunal including through parties bearing their own costs is strong. (Emphasis added)
Essentially the Tribunal deals with applications relating to housing, where in relative terms the claims are low, and need to be addressed quickly and at minimal cost to both parties, so it is appropriate parties bear their own costs; it exercises protective jurisdictions, including mental health, guardianship, and administration matters, where it would be inappropriate for parties to bear costs on a "win/lose" basis, since this is not the nature of the process before the Tribunal; and in its review jurisdiction, where the Tribunal principally hears applications concerning whether a decision of a government agency is "correct or preferable", and the Tribunal's role is generally in the nature of administrative review, rather than the resolution of an inter partes dispute between individuals.
However, when the Tribunal exercises its disciplinary jurisdiction in considering a complaint such as that of the Board against Dr Clarke, the matter before the Tribunal is much more akin to an inter partes proceeding, that is, a dispute specifically between parties with interests to assert, in this case, between the Board and Dr Clarke. In inter partes proceedings the award of costs is usual, on the basis that the unsuccessful party bears the costs of the successful party, as well as their own.[35]
Public Policy Considerations and the History of the EO Act costs provisions in SA
...It seems to us that there was a very good reason that the Act provides, as it does, in section 26, for a limited basis upon which costs may be awarded, rather than providing for the unsuccessful party to pay the costs of the successful party before the Tribunal. The reason is one of public policy. The preamble of the Act says that it is: > > An Act to promote equality of opportunity between the citizens of this state; to prevent certain kinds of discrimination based on sex, race, disability, age or various other grounds; to facilitate the participation of citizens in the economic and social life of the community; and to deal with other related matters. > > ...The limitation on the circumstances in which costs may be awarded is intended to limit the extent to which a complainant might be discouraged from pursuing a claim under the Act before the Tribunal by reason of the likely expense in pursuing it. Bearing that in mind, in all of the circumstances of this case, we do not consider that it would be appropriate to make an order for costs pursuant to section 26(1)(c) of the Act.
'The Bill makes it clear that, generally, SAET is a no-costs jurisdiction unless provisions in the SAET Act or an Act conferring jurisdiction on SAET permit the award of costs. The Bill does not intend to alter the status quo as regards costs and, if costs are able to be awarded prior to the particular jurisdiction being conferred on SAET, SAET will also be able to award costs when it exercises that jurisdiction.'
Subject to this Act or a relevant Act, parties bear their own costs in any proceedings before the Tribunal (other than proceedings assigned to the South Australian Employment Court to which section 26B applies).
However, in my opinion, the Tribunal does have power under s 26B of the SAET Act to award costs in proceedings referred under the EO Act. The limitation in s 52(1) is specifically stated not to be applicable in proceedings assigned to the Court to which section 26B applies. I have explained why the EO complaint should be considered to have been assigned to the Court by the operation of rule 11(c) of the Rules. Assuming the EO Act jurisdiction is in the nature of a civil jurisdiction, then the Tribunal, in exercising that jurisdiction, may exercise any power under Part 6 of the DC Act, including the power to award costs against a party in the proceedings. (Emphasis added)
An order for costs is ultimately within the discretion of the relevant court. The Court should not decline to make an order for costs in a jurisdiction that provides for it without good reason. We accept that an order is appropriate in the circumstances of this matter.
Civil and Administrative Tribunals in Australia are not "no costs" jurisdictions.
(c) the relative strengths of the claim made by each of the parties, including whether a party has made a claim that has no tenable basis in fact or law;
(d) the nature and complexity of the proceedings;
(e) any other matter the Tribunal considers relevant." [54]
special circumstances are circumstances that are out of the ordinary, they do not have to be extraordinary or exceptional: see for instance CPD Holdings Pty Ltd t/as The Bathroom Exchange v Baguley [2015] NSWCATAP 21. (Emphasis added)
Case law on costs - public policy considerations in other equal opportunity jurisdictions
The decision in Tadawan was always meant to be one made on its own facts and it has not been universally followed in the Federal Magistrates Court. To the extent that it may be considered a precedent for the non-imposition of costs orders in 'deserving cases' this should no longer continue. I am satisfied that the superior courts have now made it clear what the law should be in relation to such applications in the anti-discrimination area and I am content to follow them.
While the Disability Discrimination Act is without doubt beneficial legislation, its characterisation as such does not mean that this Court is to apply any different approach as to costs. In conferring jurisdiction under a particular statute Parliament may conclude that policy considerations warrant a special provision as to costs, for example that there be no order as to costs or that costs only be awarded in certain circumstances, such as, for example, where a proceeding has been instituted vexatiously or without reasonable cause: Workplace Relations Act 1996 (Cth) s 347. The absence of any such provision applicable to the present case confirms that the usual principles as to costs are to apply.
... section 110 creates a presumption that each party will pay his or her own costs and a discretion to award costs; this discretion must be exercised judicially, and no authority or rule can determine whether in any particular case an order should be made...the kinds of circumstances which have been regarded in previous cases as justifying an award of costs against an applicant include (i) the manner in which the applicant has conducted the proceedings, in particular whether the proceedings were vexatious ... > > ... As a general principle, tribunals exercising jurisdiction where parties are by statute protected from the usual costs consequences of litigating must be careful to ensure that parties do not abuse this statutory privilege by acting unreasonably, unfairly or oppressively towards their opponents. Whether a party's conduct of proceedings is unreasonable, unfair or oppressive will be assessed objectively rather than subjectively ... > > ... Once it is demonstrated that 'there are circumstances that justify' the Tribunal making an order for costs, the Tribunal has a wide and unfettered discretion and may 'make such orders as it thinks fit'. (Emphasis added)
Recent moves towards a new approach to costs in EO proceedings
Tribunal's consideration of the costs application in this matter
**(2) The main objectives of the Tribunal that are relevant to simplifying proceedings and keeping costs to a minimum insofar as is just and appropriate (s 57(2)(a))
(3) The need to ensure that proceedings are fair and that parties are not disadvantaged by proceedings that have little merit (s 57(2)(b))**
[1] Paragraph 24 affidavit of Dr Giang Thu Nguyen sworn on 14 February 2024.
[2] And see ss 47 and 48 and SACAT Regulations 2015, regulations 7 and 11.
[3] Section 26(1) of the EO Act has now been repealed.
[4] See South Australian Civil and Administrative Tribunal Rules 2014 rule 101.
[5] See Oshlack v Richmond River Council [1998] HCA 11; (1998) 193 CLR 72 at 97 [67] per McHugh J: The expression the "usual order as to costs" embodies the important principle that, subject to certain limited exceptions, a successful party in litigation is entitled to an award of costs in its favour. The principle is grounded in reasons of fairness and policy and operates whether the successful party is the plaintiff or the defendant. Costs are not awarded to punish an unsuccessful party. The primary purpose of an award of costs is to indemnify the successful party. If the litigation had not been brought, or defended, by the unsuccessful party the successful party would not have incurred the expense which it did. As between the parties, fairness dictates that the unsuccessful party typically bears the liability for the costs of the unsuccessful litigation (footnotes omitted).
[6] I observe that Justice Parker used that phrase in Tronnolone v Edwards & Bryan [2016] SACAT 27 at [35].
[10] South Australian Housing Trust v Brady & Milera [2018] SACAT 2 at [18] per Justice Hughes; Clarke v Veterinary Surgeons Board of South Australia (No 2) [2021] SACAT 100 at [9].
[11] Hoare v Registrar of Firearms [2021] SACAT 65 at [32]; Clarke v Veterinary Surgeons Board of South Australia (No 2) [2021] SACAT 100 at [34]; GKZ v Department of Child Protection [2022] SACAT 29 at [71].
[12] Clarke v Veterinary Surgeons Board of South Australia (No 2) [2021] SACAT 100 at [16].
[13] South Australian Housing Trust v Brady & Milera [2018] SACAT 2 at [19] per Justice Hughes; Re HWS [2018] SACAT 39 at [31]; Clarke v Veterinary Surgeons Board of South Australia (No 2) [2021] SACAT 100 at [32].
[14] See generally Hanna v City of Marion & Anor [2020] SACAT 21 at [45].
[16] Rule 4, South Australian Civil and Administrative Tribunal Rules 2014; Re HWS [2018] SACAT 39 at [31]; Clarke v Veterinary Surgeons Board of South Australia (No 2) [2021] SACAT 100 at [36].
[17] Tronnolone v Edwards & Bryan [2016] SACAT 27 at [35] per Justice Parker; South Australian Housing Trust v Brady & Milera [2018] SACAT 2 at [20] per Justice Hughes; Hanna v City of Marion & Anor [2020] SACAT 21 at [31.
[18] GKZ v Department of Child Protection (No 3) [2022] SACAT 76 at [14].
[19] Hoare v Registrar of Firearms [2021] SACAT 65 at [15].
[20] GKZ v Department of Child Protection [2022] SACAT 29 at [109]. Also, Tronnolone v Edwards & Bryan [2016] SACAT 27 at [35].
[21] GKZ v Department of Child Protection (No 3) [2022] SACAT 76 at [13], [17], [25].
[22] Steel v SA Ambulance Service [2020] SACAT 86 at [66].
[23] See generally South Australian Housing Trust v Brady & Milera [2018] SACAT 2 at [22], [26], [33], [34] per Justice Hughes and Re HWS [2018] SACAT 39 at [31].
[24] South Australian Housing Trust v Brady & Milera [2018] SACAT 2 at [36] per Justice Hughes. Also, Re HWS [2018] SACAT 39 at [44].
[25] South Australian Housing Trust v Brady & Milera [2018] SACAT 2 at [38] per Justice Hughes; GKZ v Department of Child Protection [2022] SACAT 29 at [76].
[26] GKZ v Department of Child Protection [2022] SACAT 29 at [86].
[27] Hoare v Registrar of Firearms [2021] SACAT 65 at [18].
[28] Clarke v Veterinary Surgeons Board of South Australia (No 2) [2021] SACAT 100 at [30].
[29] Nash supra at [11] subparagraph (n) citing Hoare v Registrar of Firearms.
[37] See also Nguyen v Ross and Anor [2021] SACAT 112 at [14] - [16].
[40] EO Act 2 October 2009 - 30 June 2017.
[44] Ritson v South Australia Police [2019] SAET 205; Savage v Vili's Cakes [2019] SAET 239; and see Sastre v Commissioner for Equal Opportunity and TAFE SA [2018] SAET 147.
[45] Rule 11 of the SAET Rules initially stated that non-criminal proceedings under the Equal Opportunity Act 1984 were assigned to the Court for resolution and determination if not successfully conciliated by the Tribunal. The rule was amended on 6 February 2018, by the South Australian Employment Tribunal (Amendment No. 1) Rules 2018. Rule 11 no longer assigns any proceeding referred to SAET under the EO Act to the Court.
[46] Ritson v South Australia Police supra at [67] per Deputy President Judge Hannon.
[51] Section 109 Victorian Civil and Administrative Tribunal Act 1998 ('VCAT Act'); s 60 Civil and Administrative Tribunal Act 2013 ('NCAT Act') (and see s 13 for the limited areas where NCAT may not award costs); ss 100 and 102 Queensland Civil and Administrative Tribunal Act 2009; s 87 State Administrative Tribunal Act 2004; s 120 Tasmanian Civil and Administrative Tribunal Act 2020 ('TasCAT Act'); s 48 ACT Civil and Administrative Tribunal Act 2008.
[57] Sections 47 and 48 SACAT Act and reg 11 of the SACAT Regulations.
[58] Tadawan v South Australia [2001] FMCA 25.
[59] Tadawan v South Australia [2001] FMCA 25 [62] - [63]; McKenzie v Department of Urban Services [2001] FMCA 20; (2001) 163 FLR 133, 156 [95]; Ryan v The Presbytery of Wide Bay Sunshine Coast [2001] FMCA 12 [20] and others.
[60] See AHRC Federal Discrimination Law: Chapter 8 Costs awards.
[61] See, for example, Tate v Rafin [2000] FCA 1582, [71]; Creek v Cairns Post Pty Ltd [2001] FCA 1150, [1]; Li v Minister for Immigration & Multicultural Affairs [2001] FCA 1414, [57]; Paramasivam v Wheeler [2001] FCA 231, [24] (Hill, Tamberlin and Carr JJ); Jacomb v Australian Municipal Administrative Clerical & Services Union [2004] FCA 1600, [4]; Rispoli v Merck Sharpe & Dohme (Australia) Pty Ltd (No 2) [2003] FMCA 516, [11]; Ball v Morgan [2001] FMCA 127, [93]; Gluyas v Commonwealth (No 2) [2004] FMCA 359, [5]; Hollingdale v North Coast Area Health Service (No 2) [2006] FMCA 585, [10].
[66] Damages and Costs in Sexual Harassment Litigation: A Doctrinal, Qualitative and Quantitative Study: Thornton, Pender, Castles, October 2022 published by the ANU and the Commonwealth AGD.
[68] I note that the Bill proposes adopting the requirements of the 'equal access model' (which would prevent a court from ordering an applicant to pay the respondent's costs except where the applicant had acted vexatiously or unreasonably) with the ability to award costs against an applicant in circumstances where the respondent has been successful on all grounds, the respondent does not have a significant power advantage over the applicant and the respondent does not have significant financial or other resources, relative to the applicant.
[69] Nguyen v Ross & Anor [2023[ SACAT 49 [712], p 115 referencing T 31/5/22 p 10.
Nguyen
Ross & Anor [2024] SACAT 69
(2001) 163 FLR 133
(1998) 193 CLR 72