Application to Reject Costs Referees Report allowed due to failure of procedural fairness

Body Corporate for Cherwood Lodge CTS 20711 v Christophi [2021] QSC 270

The Body Corporate claimed unpaid levies from the Defendant in the amount $28,228.23 plus interest and costs. [2] Rather than deal with the claim for reasonable recovery costs pursuant to s145 of the Body Corporate and Community Management (Standard Module) (the Module), His Honour Jackson J referred the claim for Costs to a referee pursuant to s505 of the Uniform Civil Procedure Rules 1999. [12] Notably the Referral was to be conducted pursuant to Chapter 17A, Division 3 of the UCPR.

The Costs Assessor assessed reasonable recovery costs pursuant to the Module in the amount of $205,799.90 on a debt of $28,228.23. The Defendant’s Solicitors wrote to the Costs Assessor requesting reasons for his determination for allowing the reasonable recovery costs and the Invoices of the Plaintiff’s former and current Solicitors. No response has been received from the Costs Assessor in respect to how he came up with his determination as to reasonable recovery costs. [16]

Accordingly the Defendant applied to court to throw out the Referees Report pursuant to s505(D) of the UCPR. The Defendant contented that there was a breach of procedural fairness and that the assessment was not conducted in accordance with the Orders pursuant Chapter 17A, Division 3 of the UCPR.

Her Honour Bowskill also considered that Report did not adequately explain the approach the Costs Assessor undertook as referee. The Defendant submitted a number of issues in the Plaintiff’s Claim for Costs which have not been adequately explained. [16]

The Defendant’s Application was upheld and it was ordered that another Referee be appointed to assess reasonable recovery costs Chapter 17A, Division 3. Accordingly the Plaintiff’s cross-application to uphold the Referees report was rejected. Her Honour refined His Honour Jacksons Orders removing with “such modifications as he considers necessary” as Her Honour considered these words unnecessary.