Offers of compromise by acquiring authorities in Class 3 compensation proceedings

The NSW Court of Appeal has held that an acquiring authority which made an offer of compromise 10 months prior to hearing which was ultimately more favourable to a dispossessed land owner than the Land and Environment Court's determination of compensation, was not entitled to its indemnity costs under Rule 42.15(2) of the UCPR. The Court found that the dispossessed land owner was entitled to its costs up to and including the date the offer of compromise was made but, after that date, each party was required to bear its own costs of the litigation.

CLASS 3 COMPENSATION PROCEEDINGS – THE GENERAL COSTS POSITION

In Class 3 compensation proceedings, the costs position following the conclusion of proceedings differs from the general costs rule that "costs follow the event".¹ The general costs rule which applies in Class 3 compensation proceedings was summarised in the 2011 NSW Court of Appeal case of Dillon v Gosford City Council² (Dillon). In Dillon, the Court held