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Local Governments are entitled to all their reasonable costs in proceedings for recover of outstanding rates.

Local Governments are entitled to all their reasonable costs instead of the more restricted ‘party party’ in proceedings for recovery of outstanding rates, service charges, and emergency services levies, costs, the Court of Appeal has unanimously found in the decision of Parker v City of Rockingham [2021] WASCA 120.

Except clarify the onus lies on the Local Government to establish their costs are ‘reasonable’ and not on the ratepayers to prove they were ‘unreasonable’, the Court of Appeal upheld the substance of the earlier District Court decision of her Honour Vernon DCJ and confirmed that the nature of the costs recoveries provided by section 6.56(1) of the Local Government Act 1995 (WA) and section 36z(2) of the Fire and Emergency Services Act 1998 (WA) was a special statutory right deliberately given to local governments and not the more usual “party party” costs.

With this unanimous decision, Local Governments can proceed with their rates recoveries confident their reasonable legal costs will be recouped. Similarly, ratepayers should exercise caution when challenging such proceedings as the costs debt may well exceed the rate debt.

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