Costs

Appeal from the Magistrates Court of WA

Perth Lawyer

I appeared for the Appellant in Chapple v Dulux Group (Australia) Pty Ltd [2022] WADC 73. The decision is here.

The case involved an Appeal from a Minor Case in the Magistrates Court of Western Australia.

The case related (amongst other things) to the Appellant’s allegation that the Respondent failed to provide goods (paint coating and render) in accordance with the description offered by the Respondent.

Magistrates Court Proceedings

At trial, both the Appellant and Respondent adduced expert evidence and tendered expert reports in support of their respective cases. The Magistrate made a finding that the expert witness called by the Appellant did not possess the relevant expertise to give opinion evidence at trial.

The Magistrate dismissed the Appellant’s claim, brought under the Australian Consumer Law, and awarded costs in favour of the Respondent.

Appeal

The Notice of Appeal alleged on three separate grounds that the Magistrate had denied him natural justice.

The decision of Commissioner Collins of the District Court of Western Australia highlights several crucial features of the Magistrates Court as compared to other jurisdictions.

Minor Cases 

Part 4 of the Magistrates Court (Civil Proceedings) Act 2004 (MCCP Act) relates to Minor Cases, defined under s 26 of the MCCP Act.

There are limited grounds upon which an appeal can be brought in relation to the decision of a Magistrate in a Minor Case. Relevantly here, s 32 (3) (b) permits an appeal on the ground of a denial of natural justice.

 Each ground of appeal relied upon in the Appellant’s case asserted a denial of natural justice.

Costs in the Magistrates Court

The Magistrates Court is typically a “no costs jurisdiction”.

However, s 31 (3) of the MCCP Act allows a successful party to claim costs other than “allowable costs” if the Court is satisfied that there are “exceptional circumstances” that would create an injustice if costs were not awarded to the successful party.

The Magistrate delivered brief reasons for the award of costs (see at pages 44 and 45 of the decision).

Decision

The District Court allowed the Appeal (in part) and set aside the costs order made by the Magistrate in favour of the Respondent.

The Court, after considering thoroughly the law on natural justice, ultimately agreed with my submission that the learned Magistrate, in awarding costs, failed to disclose adequate reasons in relation to the existence of “exceptional circumstances” as required by s 31 (3) of the MCCP Act.

The case highlights the importance of decision makers providing adequate reasons for their decisions.

Additionally, the Court highlighted the necessity of a thorough consideration of the legislative context of a decision and the relevant jurisdiction, when determining the content of the duty of natural justice that applies in any given case.

Crucial here, was the overriding objects of the Magistrates Court as a court of summary jurisdiction and the explicit requirements for “exceptional circumstances” in the legislation before an adverse costs order can be made.

For these reasons, the Court held that the Magistrate was required to identify the relevant facts upon which the decision was based and allowed the Appeal on this point.

Statistics on the small number of cases that go to trial in WA

Perth Lawyer Richard Graham

It is very interesting to get statistics about how only a small number of cases actually go to trial.

In the Department of Justice's Annual Report 2015/2016 the raw numbers are published for the Supreme Court of Western Australia and the District Court of Western Australia.

Only 51 civil cases went to trial in the Supreme Court, out of 2,964 cases that were finalised.

This means 98.25 % of cases were settled / discontinued etc and only 1.75 % went to trial.

Only 50 civil cases went to trial in the District Court, out of 4,948 cases that were finalised. 

This means 98.99 % of cases were settled / discontinued etc and only 1.01 % went to trial.

Similar statistics are not available online for the Magistrates Court of WA.

I have put together this spreadsheet, showing more detail.

 

 

Questions to ask before hiring a lawyer

Perth Lawyer Richard Graham

You should ask these questions before hiring a lawyer.

Duplication of work

To avoid duplication of legal costs it is important to find out who will actually be doing the work.

  1. Will the Partner, or person you speak to on the first occasion, be getting a junior lawyer to do the work?

  2. Does this include Court appearances and mediations?

  3. How is the potential for duplication of legal costs, as a result, avoided?

  4. If the case goes to trial, or there are any contested hearings in the lead up to trial, will a barrister be hired too?

  5. How will any duplication of legal costs be avoided as a result of hiring a barrister?

Experience

It is important to know what legal experience the lawyer or lawyers doing the work have.

  1. How long have you been admitted as a lawyer? Have you done this type of work, before, and how frequently?

  2. How often do you appear in Court?

  3. If the matter is likely to be heard in the Magistrates Court of Western Australia, do you have experience in the Magistrates Court and in Magistrates Court procedure

  4. If the matter is likely to be heard in the District Court or Supreme Court of Western Australia, do you have experience in those Courts?

  5. What extra training have you done and do on an ongoing basis, relevant to the work I am engaging you to do?

Costs & advice

The most frustrating part of hiring a lawyer is the limited information available your future legal costs.

  1. On what basis are the costs estimates provided? Has a spreadsheet been used to do the estimates? Can the spreadsheet be made available?

  2. What is the method for providing advice? Is this provided in writing or orally or both? If both, what factor determines whether the advice is provided in writing vs orally?

  3. If we need to get in touch, can we send each other text messages to avoid wasted time leaving messages for each other, by telephone? Do you use Skype?

  4. Based on your experience, what % of costs in a case like this are recovered if we win? What am I getting from you for the "gap"?

  5. Do you charge anything extra for work done by secretaries and non-legal staff?

  6. Will you provide me options for work to be contracted out, including offshore? (This is such as in relation to preparation of list of documents for discovery)?

  7. If there is any need for a taxation of costs in relation to costs awarded during the course of the case, do you personally do the bill of costs and attend any hearing, or do you hire an external costs consultant?

  8. If I have questions about my bill, how do you make it easy for me to ask questions?

  9. Do you provide audio recordings of our meetings, at request? What about telephone conversations, as well?