High Court dismisses Redland City Council appeal against class action

The High Court of Australia today dismissed an appeal by Redland City Council against lower court decisions in favour of a class action case.

The class action case by ratepayers in Raby Bay, Aquatic Paradise and Sovereign Waters relates to the Council’s failure to refund, to canal estate property owners, all of a special charge which did not comply with the Local Government regulations.

These special charges were imposed by Redland City Council between 2011 and 2017.

When the Council became aware that there was no legal basis for imposing these special charges, they issued partial refunds to property owners with an aggregate value of about $8 million.

But the Council retained some of the money raised through the incorrectly levied special charges, arguing that this money had been spent on works which benefited the property owners.

A class action managed by Shine Lawyers was initiated in 2018 on the basis that any affected property owner could choose to opt out. The Raby Bay Ratepayers Association encouraged its members to opt out

This became the first successful class action in Queensland with a Supreme Court decision finding in favour of John Kozik and other plaintiffs handed down in 2021.

Redland City Council lodged an appeal which resulted in a second loss. The Queensland Court of Appeal judgement, dated 26 August 2022, found that the Kozik class action succeeded, but for different reasons to those set out in the initial Court decision.

Redland City Council then appealed to the High Court which heard the case in September 2023.

The judgement published today reveals a split decision with three judges finding that the Council’s appeal should be dismissed and two judges saying that the appeal should be allowed.

The final outcome is that Redland City Council’s appeal is dismissed, with costs.

The Courier Mail reports that the Council will now have to pay up to $10 million to property owners in refunds plus interest, as well as about $2 million in legal costs.

Further Reading

Redland City Bulletin, 28 May 2018: Shine Lawyers could take Redland City Council to court over canal levies

Redland City Bulletin, 4 June 2018: Raby Bay Ratepayers Association rejects class action over canal level

Redland City Bulletin, 9 August 2019: Canal and lakefront property owners are included in a Shine Lawyers class action unless they opt out

Supreme Court of Queensland, 13 September 2021: Decision by Judge Bradly

Redland City Bulletin, 20 September 2021: Redlands Raby Bay, Aquatic Paradise and Sovereign Waters residents win court action against council

Supreme Court of Queensland, 4 April 2022: Decision by Court of Appeal

Redland City Council, 30 August 2022: Redland City Council reviews Court decision on class action against Council

High Court of Australia, 13 March 2024: Judgement on appeal and cross appeal

Shine Lawyers, 13 March 2024: Update: High Court of Australia rules in favour of class action  

Courier Mail, 13 March 2024: Landowners’ David v Goliath win as Redland council to repay $10m

Redland City Council, 15 March 2024: Council acknowledges High Court class action decision

Redlands2030 – 13 March 2024

Updated 15 March 2024 with inclusion of link to Redland City Council announcement.