High Court dismisses costs application where settlement agreement omitted any mention of legal expenses.
Legislator summary
AI generatedThe High Court dismissed Laois County Council's application for legal costs following a settlement reached between the Council and Nutgrove Sand and Gravel Limited. The parties had agreed to prohibit quarrying activities and restore the land, but the settlement document and court order contained no reference to how legal expenses should be allocated. The court held that absent explicit agreement on costs, the natural inference is that each party bears its own legal fees.
Legislator headnote
AI generatedSection 160 of the Planning and Development Acts 2000-2015; Where parties settle proceedings without mentioning costs, each party bears its own costs.
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[2018] IEHC 69
THE HIGH COURT
2016 No. 352 MCA
IN THE MATTER OF THE PLANNING AND DEVELOPMENT ACTS 2000-2015
AND
IN THE MATTER OF AN APPLICATION PURSUANT TO SECTION 160 OF THE PLANNING AND DEVELOPMENT ACT
Between:
LAOIS COUNTY COUNCIL
APPLICANT
– and –
NUTGROVE SAND AND GRAVEL LIMITED
FIRST-NAMED RESPONDENT
– and –
PATRICK CORBET
SECOND-NAMED RESPONDENT
– and –
DAVID BRICKLEY
THIRD-NAMED RESPONDENT
JUDGMENT of Mr Justice Max Barrett delivered on 5th February, 2018.
1. On 9th December, 2015, Laois County Council issued a notice of motion seeking certain prohibitory and declaratory reliefs
concerning alleged quarrying activities at Clonalsee, County Laois. By order of the Circuit Court dated 21st April, 2016, the matter
was transferred to the High Court and came on for hearing on 20th July, 2017. In fact, the matter settled on that day without going
into a full hearing and, on 14th August, 2017, the following perfected order of the court issued:
“[Title of Proceedings]
This action being listed for hearing before the Court this day
Whereupon and on hearing what was offered by Counsel for the respective parties
And It Appearing that a settlement has been reached herein
By Consent IT IS ORDERED that
1. The Respondents their servants and agents and anyone with notice of this Order be prohibited from carrying
out the following works on the Respondents’ lands on any date after the 21st day of July 2017 save with the
express authority of the Applicant
i. Excavation of materials
ii. Expansion of the quarry
iii. Removal of any materials from the Respondents’ lands
2. The Respondents remove all plant and machinery from the Second and Third Named Respondents’ lands on or
before the 31st day of July 2017 save those otherwise agreed with the Applicant to remain for restoration
purposes.
3. The Respondents submit to and agree with the local authority a restoration plan detailing all steps to the [be?]
taken to restore the said lands to agricultural use within a period of four weeks from the date hereof.
4. This matter be listed for mention on 13th day of October 2017.”
2. A few points of note arise. First the order refers to settlement between the parties. Second, the order of the court faithfully
reflects the note handed in to the court on 20th July concerning what order was to issue from the court on consent between the
parties. Third, it appears that the order has been complied with to date. Fourth, strikingly absent from the order (and the handwritten
note) is any reference as to the issue of costs.
3. On 22nd January, 2018, the parties came before the court and Laois County Council made application for its costs. The
respondents objected to the court acceding to this application, in the first instance on the basis that the settlement arrived at
between the parties, and as referred to in the order of the court, had made no reference as to costs.
4. The court accepts the contentions of the respondents in this last regard. In the normal course of events a settlement agreement
will make specific provision in relation to the legal costs incurred. Absent such provision, a court will not imply a term in relation to
costs, the natural inference being that each party will bear its own costs. In this regard, it is perhaps useful to recall Foskett on
Compromise (8th ed.), 83, in which the learned authors observe, inter alia, as follows, under the heading “Costs”:
“5-60 Whilst a court will always deal with the question of costs in contested proceedings, it is, of course, something for
the parties to resolve by agreement if they settle those proceedings. If they do not mention it at all in their negotiations
or their agreement, the only conclusion would seem to be that each side must bear its own costs. It is not necessary, in
order to give efficacy to the agreement, for the court to imply a term relating to costs.”
5. This is respectfully accepted by the court as a good statement of the position presenting under Irish law also.
6. The foregoing being so clearly the position that pertains at law, the court does not propose to consider such further arguments as
were made by the respondents in this regard.
7. It follows that the court will make no order as to costs.