Scales of justice tipping against the community in Queensland

The cost of litigation is a barbed wire fence that stops many people using our court system. This fence becomes a towering barrier when people are trying to protect not their private interests, but something valuable to the community; say, an old building with heritage values. It’s true that when people…

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Dealing with the law is intimidating, now Queensland wants to make it more expensive as well. Martin Howard

The cost of litigation is a barbed wire fence that stops many people using our court system. This fence becomes a towering barrier when people are trying to protect not their private interests, but something valuable to the community; say, an old building with heritage values.

It’s true that when people in the community act to protect something in the public interest, they can sometimes find lawyers willing to act for free or greatly reduced fees. They then have a set of wire cutters to cut through the costs barrier.

But in most courts in Australia if you lose a case you will be ordered to pay the legal costs of the other parties. This rule, that “costs follow the event”, is truly frightening if you are thinking of going to court to protect the public interest for something like a heritage building or a piece of bushland. Your opponent is likely to be a large corporation with deep pockets and teams of lawyers and expert witnesses. Their legal costs can stretch into millions of dollars.

To improve access to the courts, particularly to challenge government decisions that affect the community, certain courts have been created in which each party bears its own costs whatever the outcome of the case. This approach greatly improves access to the court system and, thereby, promotes better decision-making.

One of these courts is the Planning and Environment Court in Queensland.

Changing laws in Queensland

This may soon change however. A Bill was recently introduced into Queensland Parliament with a significant change to the state’s planning laws.

The change would mean a losing party to an appeal in the Planning and Environment Court pays the costs of the winning party.

Why does this matter? For over 20 years, the rule in this court has been that each party pays it own costs, subject to some limited exceptions.

Imagine you live in a part of the country surrounded by farms, national parks and reserves. A large community of vulnerable animals, including koalas, live in this area. A developer snaps up a number of properties and decides to clear the land, rezoning it as high density housing with approval from the government.

What can you do? You decide to get together with others in your local community to voice your concerns, which the developer ignores. What this legislation does is let your community group bring a case against the development company without wondering if you’ll go bankrupt by the end of it.

Who will this affect?

Changing the “own costs” rule has big implications for individuals and organisations who have limited funding sources.

It also compounds the damage done when the state recently stopped funding the Environmental Defenders Office, a community legal centre that previously provided free advice on planning and environmental issues to the community. The EDO has suspended its free community advice service.

The EDO and a number of community organisations such as the Wildlife Preservation Society of Australia and Mackay Conservation Group have made submissions against the change to the costs rule, arguing it will tip the scales in favour of developers and large councils who have deep enough pockets to take on the risk of going to trial.

Some of these submissions highlight cases they were personally involved in the Planning and Environment Court. There have also been many other decisions brought and decided under the own costs rules that may never have made it to court if the party feared crippling court costs.

Why change it now?

The stated policy objective for the Bill is to improve Queensland’s planning and development system by reducing the number of actions brought to court that are based on “weak planning grounds”.

Under the existing costs rule, the Planning and Environment Court has the power to award costs in the case of “vexatious” or “frivolous” actions.

The proposed change will not stop appeals on weak planning grounds by commercial competitors seeking to discourage or delay new development: they can afford to pay the costs. But it will create a new barrier to the few individuals and community groups who challenge a development proposal even on strong planning grounds.

Only a very small fraction of development applications end up going to court even under the current costs rule. Not only this, but the Planning and Environment Court is well known for excellent early resolution management with 90% of matters resolved before even going to trial.

Everyone should have access to the law and the courts, regardless of their financial position. The proposed changes to costs awards removes these safeguards for individuals and communities who wish to protest a proposed development, and creates a barrier to accessing legal support.

Planning decisions affect everyone, and everyone should be able to be a part of that decision-making process.

Join the conversation

7 Comments sorted by

  1. Roger Simpson

    logged in via LinkedIn

    So we're back to the days of Sir Joh. I recently heard a former mayor of a Northern Queensland shire say that developers knew we would only throw a maximum of $20k at each planning appeal so they just factored this in as a development cost to beat us.

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  2. Jan Davis

    logged in via LinkedIn

    That's as may be; but not all 'developers' are faceless millionaires. I can equally point to cases where individual farmers have been caught up in claims which, in the end, have gone nowhere. The claimant walked away with their costs covered by the EDO or some other NGO; and the farmer was left with expensive legal bills that they simply had no means to pay. By default, this stopped whatever the 'development' was they had proven was within the law, as they then had no funds to progress it. That's simply not fair.

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  3. Steve Burgess

    logged in via Facebook

    This is but one of the many changes in planning law which are embedded in this omnibus Bill. One of the other significant broad objectives is to 'decouple' the process of obtaining entitlements to natural resources managed on our behalf by the State (water, minerals, fisheries, environmental services) from the planning process under the Sustainable Planning Act. To me, this is a huge backward step which will make it much harder to make sound planning decisions on large projects which impact on these public resources and amenities. It also raises the question: where is the check that all the legal requirements under the various associated Acts (water, mineral resources, fisheries, environmental protection etc) being met for a particular proposed development? I suspect that a blank stare would be the typical response to this question from within the current government. Certainly there will be little opportunity for the public to bring such concerns to the courts in future.

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  4. Evan Whitton

    Legal historian

    The authors rightly say: “Everyone should have access to the law and the courts, regardless of their financial position [but] The cost of litigation … stops many people using our court system.”

    One reason is that lawyers with an incentive to spin the process out are in charge of evidence. Judges have no incentive to prolong the process, but they began to lose control of evidence in the 15th century. More people would have access to justice if judges were put back in charge of evidence.

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  5. Chris McGrath

    Senior Lecturer at University of Queensland

    Just to update the article:

    The Parliamentary Committee reviewing the SPOLA Bill delievered its report yesterday (6 November):
    http://www.parliament.qld.gov.au/documents/committees/SDIIC/2012/05-Sustainable-Planning/Report13-SPOLA.pdf

    The Committee has affirmed the government's proposal to remove the own costs rule in the P&E Court while recommending a slight change to the proposed wording so that the court has a general discretion on costs

    In my view changing the costs rule to give the…

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    1. Bruce Moon

      Bystander!

      In reply to Chris McGrath

      Chris

      Being the recipient of a costs order following the 'discretion' of the P&E Crt, I cannot agree more.

      The issue now is that any slight error in proceedings that can be used by the more powerful side as grain for their mill.

      I suggest the problem is more the large US oriented legal firms that see Costs Orders as means to continue their receipts.

      Sadly, (from my observations) the judiciary doesn't appear to want to intervene. Rather, they prefer to accept precedent as permission to decide for costs applications.

      In some respects, the (proposed) legislation merely articulates the current practice of powerful law firms seeking scope to continue generating income.

      Cheers

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  6. Liz Downes

    logged in via email @bigpond.com

    A small correction - the name of one organisation referred to above is incorrect. It should read Wildlife Preservation Society of Queensland (not Australia), also known by the short title of Wildlife Queensland. The Wildlife Preservation Society of Australia is a separate organisation and shares common aims, but is based, I believe, in NSW.

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