[2025] NSWCA 111
General information, not legal advice.
Court of Appeal (NSW)
2025-05-23
Kirk JA at [1], Free JA at [2], Griffiths AJA at [3]
Original judgment source is linked above.
[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, and . Parties should in particular note the time limit of fourteen days in
[This headnote is not to be read as part of the judgment]
The applicants and the first respondent live in adjacent properties in the suburb of Connells Point, NSW. The development of the first respondent's land gave rise to a series of litigious disputes in the Land and Environment Court (LEC) concerning works prescribed in the underlying construction certificate. That construction certificate underwent several modifications, with its most recent iteration excluding a landscape plan (referred to as Landscape Plan Rev F) and an External Works Plan.
The applicants sought leave to appeal from orders made in relation to Class 4 proceedings in the LEC (which had been dismissed by consent by the parties) where the primary judge declined to give orders as to costs, finding that the removal of those two plans from the construction certificate did not amount to a capitulation, and rather formed part of a compromise. The primary judge also found, assuming it to be relevant, that the conduct of the first respondent was not unreasonable in pursuing his defence.
The Court held (Griffiths AJA, Kirk and Free JJA agreeing) refusing leave to appeal, with costs:
(1) As to the primary judge's reasoning why this case involved a compromise and not a surrender or capitulation, the applicants did not identify any issue of principle, matter of general importance or clear injustice to warrant a grant of leave to appeal; nor have they demonstrated any error of fact or law which is more than merely arguable: [40].
Carolan v AMF Bowling Pty Ltd t/as Bennetts Green Bowl [1995] NSWCA 69; Mohareb v Local Court of New South Wales [2024] NSWCA 235, referred to.
(2) As to the primary judge's reasoning why the first respondent's conduct of his defence was not unreasonable (assuming without deciding that this was relevant to costs: see Nadilo v Eagleton [2021] NSWCA 232), the applicants had not demonstrated any basis to grant leave: [54].
(3) While there may be rare and exceptional cases, intermediate courts of appeal will generally adopt a restrained approach in determining whether or not to grant leave to appeal from a costs order. This is in the interests of finality in litigation, as well as in recognition that costs are properly characterised as involving a matter of practice or procedure: [38]-[39], [56].
Gorczynski v Annandale Services Pty Ltd [2004] NSWCA 71, considered.
Rickus v Motor Trades Association of Australia Superannuation Fund Pty Ltd [2010] FCAFC 16; 265 ALR 112; Ouwens Casserly Real Estate Pty Ltd v Harcourts South Australia Pty Ltd [2017] SASCFC 69, referred to.
Definitions
In this Summons:
2021 Consent means development consent DA 2020/0430 granted on 7 October 2021 by the Council for demolition works and construction of a dwelling house on the Site.
2021 Consent As Modified means the 2021 Consent as modified by development consent modification MOD2022/0136 on 20 October 2022 for development on the Site described therein as "demolition works, construction of a dwelling house (existing boathouse and swimming pool to be retained). The amendments seek to change levels, openings, stairs and fencing and add an external stair and solar panels".
Council means the Georges River Council.
Construction Certificate means Construction Certificate CCC-26BOW/2021 issued by the Second Respondent on 17 November 2021.
External Works Footing Plans means the engineering plans identified as such and prepared by AE Consulting Engineers Revision C dated 1 November 2022.
Landscape Plans means landscaping plans and specifications prepared by Dapple Designs, Revision F Dated 21/10/2022, Reference Number LP 01, Sheet 1-9 inclusive.
Modification Construction Certificate means construction certificate CCC-26BOW/2022MOD issued by the Second Respondent and dated 3 November 2022 (as further modified by certificate CCC-26BOW/2022MOD/1 and dated 10 February 2023).
EPA Act means Environmental Planning and Assessment Act 1979.
Site means Lot 13 DP 14,844 located at 26 Bowden Crescent, Connells Point.
Relief Claimed
1 A declaration pursuant to section 6.8(2) of the EPA Act that the Modified Construction Certificate has no effect because it was issued after the building work to which it related was physically commenced on the Site to which the 2021 Consent As Modified applies.
2 Alternatively to order 1, a declaration pursuant to section 6.32 of the EPA Act that the plans and specifications or standards of building work specified in the Modification Construction Certificate are not consistent with the 2021 Consent As Modified for the relevant building work, and, to the extent that it incorporates the Landscape Plans and the External Works Footing Plans the Modification Construction Certificate is invalid and of no effect.
3 Further and alternatively to order 2, declarations that: A declaration that
1a) the Landscape Plans depict the erection of buildings and/or the carrying out of works that constitute development requiring development consent, in circumstances where no development consent has been sought or obtained for those works.
2b) A declaration that, contrary to section 4.2(1) of the EPA Act, the Landscape Plans do not comply with the 2021 Consent As Modified in that they:
a)i. propose works outside the boundaries of the Site in breach of condition 30;
b)ii. depict new retaining walls in breach of condition 33; and
c)iii. depict new building works not approved by the 2021 Consent As Modified.
3 Alternatively to order 2, a declaration pursuant to section 6.32 of the EPA Act that the plans and specifications or standards of building work specified in the Modification Construction Certificate are not consistent with the 2021 Consent As Modified for the relevant building work, and, to the extent that it incorporates the Landscape Plans, the Modification Construction Certificate is invalid and of no effect.
4 A declaration that the First Respondent has carried out building works without development consent or a construction certificate in breach of sections 4.2(1) and 6.7(1) of the EPA Act including but not limited to the construction of dincel walls or retaining walls in the foreshore building area adjacent to the staircase to the pool deck., the construction of a walkway on the south-western boundary of the Site, and the construction of piles, beams and floor to the boathouse.
5 An order that unless authorised by a further development consent, the First Respondent by himself, his employees, servants and agents be restrained from carrying out any further building work:
a) described in the Landscape Plans; or
a)b) described in the External Works Footing Plans; or
b)c) on land below the MHWM or land owned by the State of NSW; or
c)d) in relation to which there is no applicable development consent.
6 An order that the First Respondent by himself, his employees, servants and agents be restrained from carrying out any building work not in accordance with the plans referred to in and forming part of the 2021 Consent As Modified.
7 An order that the First Respondent, by himself, his employees, servants and agents
i. any building work referred to in the Landscape Plans;
i.ii. any building work referred to in the External Works Footing Plans;
ii.iii. any building work on the Site which is not in accordance with the plans referred to in and forming part of the 2021 Consent As Modified; and
iii.iv. any building work on the Site in respect of which there is no applicable development consent; and
b) within 28 days remove, demolish and rectify:
i. all buildings, works and structures referred to in order 4 above; and
ii. any building work carried out in reliance on the Landscape Plans including the construction of a walkway on the south-western boundary of the Site;
iii. any building work carried out in reliance on the External Works Footing Plans including the construction of retaining walls; and
c) and dispose of any residual building material following demolition at an authorised waste facility.
8 An order that the First Respondent by himself, his employees, servants and agents be restrained from carrying out any further building work unless and until:
a) he obtains a development consent for that building work; and
b) he obtains a construction certificate in respect of that building work; and
c) he submits to the Georges River Council a landscape plan which is compliant with the 2021 Consent As Modified pursuant to condition 24 of the 2021 Consent As Modified and in accordance with order 8 of Duggan J made in Sader v Elgammal [2022] NSWLEC 107 on 30 September 2022.
9 An order that the Respondents pay the Applicants' costs of these proceedings on an indemnity basis.
10 Such other or further orders as the Court sees fit.
(a) there was "no clear winner" and Mr Elgammal had not surrendered or capitulated; and
(b) Landscape Plan Rev D and Landscape Plan Rev F were not "almost identical" as claimed by the Saders, and it was not unreasonable of Mr Elgammal to defend the proceeding up until 22 March 2024.
(1) whether the removal of Landscape Plan Rev F from CC2.1 was a "capitulation" by Mr Elgammal; and
(2) whether Mr Elgammal acted unreasonably in defending the proceedings.
(a) Was the removal of Landscape Plan Rev F from CC2.1 "a capitulation"?
... there is a distinction between an effective surrender by one party to the other which ordinarily would attract the usual costs order, and a settlement, supervening event or an extra-curial activity that so removed or modified the subject matter of the dispute that no issue remained except that of costs where ordinarily no costs order would be made.
(a) Nadilo did not involve a complete dismissal of the claim and the primary judge there had made an order requiring the respondent to ensure that the air conditioning units (which were at the heart of the litigation) met, on an ongoing basis, relevant regulatory standards; and
(b) there was no compromise - rather the respondents there simply surrendered, underpinning the findings by all three judges in Nadilo that the applicant was a "clear winner" (PJ [79]).
(b) Did Mr Elgammal act unreasonably in defending the proceedings?
Costs are, as a general rule, matters of practice and procedure, and therefore subject to the same stringent standards as Gilbert. Thus Priestley JA in Wentworth v Rogers (No 3) (1986) 6 NSWLR 642 at 651:
In a great many cases, including the present, costs are in the discretion of the Court; they also seem to me to fall within the category of matters of practice or procedure. The same policy therefore seems to me to underlie the granting or withholding of leave to appeal in a case such as the present as the policy described by Jordan CJ in Re the Will of F B Gilbert (Deceased) [1946] NSWStRp 24; (1946) 46 SR (NSW) 318 at 323;
I am conscious of the undesirability of intruding into disputed facts, and descending into an analysis of the relief sought in the summons and the amended summons. I am aware of the admonition in Lai Qin at 624-625 to avoid embarking on a hypothetical trial and assessing the prospects of success of the relief sought in prayer 2 of the amended summons. However, to the extent it be permissible on a hearing of this kind in relation to costs, for the reasons advanced by the first respondent recorded at [61] above, I am not satisfied that the matters sought to be relied upon by the applicants at [51] above were approved by landscape plan rev F.
[51] The applicants submitted that "the core issue permeating" the 2022 proceedings before Duggan J and these proceedings was the continued reliance by the first respondent on landscape plans prepared by Dapple Design (both rev D and rev F), and that concerns regarding landscape plan rev F permeated the correspondence and pleadings. They submitted that the outcome that they sought to achieve was to ensure that the first respondent did not rely on landscape plan rev F, and rather sought development consent for any redevelopment and/or building works of the terrace and supporting natural rock face on the foreshore of the Georges River.
...
[61] Despite the "danger of intruding into disputed facts", in order to respond to the applicants' submissions, it was necessary to understand the gravamen of the alternative claim. The "essence of the claim" was in correspondence from the applicants' solicitor dated 12 December 2023 which asserted that "the [landscape plan rev F] show many of the same features depicted in [landscape plan rev D] (which were found by the Court to be inconsistent with the [development consent]". That assertion was submitted to be based upon a misreading of the construction certificate and the annotated landscape plan rev F. The construction certificate itself was stamped with the following note: "the scope of works approved under this constructions (sic) certificate Modification CCC-26BOW/2022MOD/1 include annotated landscape plan only". Further, the landscape plan, while appearing in the list of approved plans, was not stamped by the certifier.
40. A simple comparison between the Landscape Plans Revision D and the Landscape Plans Rev F shows their marked similarities. A comparison with the approved architectural plans shows their marked differences and leads to the inescapable finding that, for the purposes of section 6.32 or the EP&A Act. the plans and specifications or standards of building work specified in the certificate were not consistent with the development consent for the building work.
Sader
Elgammal [2025] NSWCA 111
(1936) 55 CLR 499
(1997) 186 CLR 622
(1986) 6 NSWLR 642