JUDGMENT
1 HIS HONOUR: Mr and Mrs Tou have applied for an order that their neighbour, Mr Maskiney, pay their costs of the proceedings Mr and Mrs Tou brought in the court under the Trees (Disputes Between Neighbours) Act 2006.
2 The proceedings were heard and determined by Commissioner Fakes on 22 March 2010. Commissioner Fakes ordered Mr Maskiney to arrange and pay for the removal of a Casuarina tree growing on Mr Maskiney's land which had caused damage to certain property on Mr and Mrs Tou's land; to pay Mr and Mrs Tou a specified amount in compensation for that property damage; and to arrange and pay for a plumber to clear a specified length of the sewer on Mr and Mrs Tou's land: see Tou v Maskiney [2010] NSWLEC 1068 at [22].
3 Proceedings brought by Mr and Mrs Tou are in Class 2 of the Court's jurisdiction. Under Part 3 rule 3.7 of the Land and Environment Court Rules 2007 costs for proceedings in Class 2 ordinarily are not awarded. Rule 3.7(2) provides:
"The Court is not to make an order for the payment of costs unless the Court considers that the making of an order as to the whole or any part of the costs is fair and reasonable in the circumstances."
4 Mr and Mrs Tou, nevertheless, submit that the making of a costs order is fair and reasonable in the circumstances. Although a range of circumstances was referred to in Mrs Tou's affidavit, at the hearing of the motion for costs, Mrs Sin, the solicitor for Mr and Mrs Tou, relied only on the factor that Mr Maskiney had acted unreasonably in the circumstances leading up to the commencement of the proceedings: see rule 3.7(3)(c) and see also Grant v Kiama Municipal Council [2006] NSWLEC 70 at [15(e)] and cases therein referred to. One example of unreasonable conduct is where a party, by its conduct, effectively invites the litigation: see Oshlack v Richmond River Council (1998) 193 CLR 72 at [69] and Evans v Maclean Shire Council [2004] NSWLEC 89; (2004) 133 LGERA 270 at [21]-[24].
5 Mr and Mrs Tou first refer to the fact that there are no trees in the front yard of their land (although there is a street tree at the front of Mr and Mrs Tou's land) and the relevant trees are located in Mr Maskiney's land along the common boundary with Mr and Mrs Tou's land. They also refer to the fact that at the hearing of the proceedings Mr Maskiney did not factually contest, by either evidence or submissions, that the Casuarina tree on his land had caused damage to Mr and Mrs Tou's driveway and probably blocked the sewer: see paragraph 14 of Commissioner Fakes' judgment. After the proceedings were commenced, Mr Maskiney agreed, at his expense, to remove the tree and clear the sewer and pay half the costs of replacing the concrete drive and pathway.
6 Mr and Mrs Tou submit that Mr Maskiney's conduct prior to the litigation needs to be assessed against this background.
7 Mr and Mrs Tou adduced evidence that they had, over many years, informed Mr Maskiney that the trees on Mr Maskiney's property, including the Casuarina tree, were causing damage to Mr and Mrs Tou's property, including by tree roots blocking the sewer and lifting and cracking the driveway. Mr and Mrs Tou wrote on 7 August 2008 to Mr Maskiney's real estate agent who manages the property. Their letter recorded the fact that Mr and Mrs Tou had been complaining to Mr Maskiney for the previous ten years about the trees located on the common boundary. Mr and Mrs Tou said in their letter:
"I have on many occasions since 1999 complained about the trees that are located near the front driveway of my residence. The trees in question are of species Casuarina sp., Jacaranda (Bignoniaceae) , Banksia (Proteaceae) and Paper-bark (Melaleuca sp.) . All of which have been highly expanding and invasive root systems. Unfortunately no action has happened since complaining every year for the past 10 years regarding the uprooting of the concrete slabs on my driveway, causing uneven deviations and instability of the soil profile and the constant blockage of my drainage. Photographs taken by a plumber showing how the proliferation of the roots from your trees have blocked my drainage have been sent previously. Moreover, I have also given you copies of receipts paid each time to a plumber to have my drainage unblocked."
8 The letter included numerous photographs showing the damage caused by the trees.
9 The letter requested Mr Maskiney to "take action to control the tree roots that have caused destruction [of] my driveway and drainage system". The action requested was:
"With the cost of living increasing rapidly it is unavoidable that I write to you to seek compensation for the damage to my driveway and to repay any continued costs of having to unblock the drainage by a plumber. Furthermore, it is my recommendation that in the interests of health and safety for occupants on both properties, and also to avoid further any escalating costs that the trees be removed or some action be taken to trim back the roots and branches of the trees by the Warringah Council Development Application for Tree Removal and Pruning under the Environmental Planning and Assessment Act 1979 (sections 78A)."
10 The letter concluded with the statement:
"I hope to hear from you soon with a favourable response."
11 Mr Maskiney's managing agent replied by letter dated 19 August 2008 stating in part:
"In response to your letter, the owner of Number 30 has been advised of the problem concerning the tree and has advised us that her legal responsibility for the tree, ends at their boundary not on to your property. They have no problem with you removing any overhanging branches or tree roots that affect your property, however, this would be at your cost."
12 On 3 June 2009, Mr and Mrs Tou's solicitor, Mrs Sin, wrote to Mr Maskiney stating:
"As you are aware, our clients have complained since 2006 about the damages to our clients' property caused by the tree roots in your property. Our clients have been incurring ongoing costs in rectifying these damages. Despite all our clients' warning to you since 2006, you have taken no action at all to fix the problems. The extent of damages includes: