Judicial Review – A Risky Business
Judicial Review – A Risky Business
Tuesday 29 April, 2025
Commencing litigation is a big decision. It is important to carefully consider whether your claim has merit and to act reasonably throughout the proceeding, or you may end up having to pay over $50,000 in costs to the other parties. This was the case for Mahora Residents Society Inc after their unsuccessful judicial review proceedings in 2024 (view here).
Background
Residents in Mahora, Hastings were opposed to a Kāinga Ora development of 10 houses on three properties in Rimu Street. They formed a group called Mahora Residents Society Inc (Mahora) and brought proceedings in the High Court for the judicial review of resource consents and notification decisions made by Hastings District Council (the Council) with respect to NZ Housing Group Limited’s (the Applicant) resource consent applications (view here). The High Court dismissed the application, and the Council and the Applicant sought costs against Mahora.
Costs
Costs were sought on the basis that there was no public interest involved, and that Mahora acted unreasonably during the proceeding. Mahora argued that the public interest was involved and their conduct during the proceeding was reasonable, so the court should refuse or reduce costs under r 14.7 of the High Court Rules 2016.
Decision
The High Court found that there was no public interest involved and awarded costs to the Council and the Applicant on the basis that:
- The matter concerned a “relatively standard” resource management consent. Although it was technically non-compliant, it had minimal effects above those of a compliant development.
- The merits of the claim were relatively weak. It sought to contest the application of permitted baselines, which is a standard practice recognised in legislation. It also advanced interpretations of the Hastings District Plan which the Court found were not available from the express wording of the Plan.
- In some respects, the Applicant acted unreasonably by significantly increasing the length and cost of the proceeding. Initially Mahora brought the claim against the Council and only joined the Applicant to seek interim orders against them. Mahora later contested the continuing participation of the Council, which is standard practice in judicial reviews of resource consent decisions. Mahora also pursued unnecessary interlocutory matters.
Risks of judicial review
Commencing a judicial review proceeding without merit and acting unreasonably during the proceeding may not only cause you to lose the proceedings but may also increase the chance of costs being awarded against you. Before you commence judicial review proceedings you should consider the strength of your case and the availability of other options.
If you have any questions or would like to seek advice in relation to a judicial review or similar issue, our team is happy to provide assistance – you can get in touch with one of our experts below.
