A finding that a council's underlying decision was Wednesbury unreasonable does not, without more, establish unreasonable conduct in the proceedings for the purposes of r 3.7 of the Land and Environment Court Rules 2007 (NSW). The unreasonableness relevant to costs under r 3.7(3)(c) and (d) is confined to unreasonableness in relation to the proceedings themselves. To obtain costs in Class 1 proceedings, a successful party must demonstrate unreasonable conduct by the opposing party as a litigant, not merely that the decision under challenge was unlawful. The standard of appellate review for r 3.7 costs decisions is that in Warren v Coombes (correctness of evaluative decision), not House v The King (discretionary decision).
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