ACAT Civil Dispute Costs — When the Tribunal Orders One Party to Pay

One of the advantages of ACAT over the ACT Magistrates Court is the default costs position: each party bears their own legal fees. Losing a civil dispute at ACAT does not normally mean paying the other side's solicitor bills on top of the judgment amount. But that default has exceptions, and they bite harder than most respondents expect.

The No-Costs Default

ACAT is primarily a "no-costs" forum. Under standard tribunal principles, each party pays their own preparation costs, legal fees, and incidental expenses regardless of the outcome. This makes the tribunal significantly less risky than the Magistrates Court, where an adverse costs order can double the financial pain of losing.

When ACAT Awards Costs

Under section 49 of the ACT Civil and Administrative Tribunal Act 2008, the tribunal retains discretion to order costs against a party who has:

• Unreasonably prolonged proceedings — for example, failing to comply with evidence timetables.
• Breached tribunal directions — ignoring deadlines set at the Directions Hearing for filing witness statements or document bundles.
• Brought a frivolous or vexatious dispute — this applies to applicants more than respondents, but a respondent who files a baseless counterclaim purely as a tactical delay can attract a costs order.

Pre-Judgment and Post-Judgment Interest

Separate from costs, ACAT can award interest on the judgment amount. Pre-judgment interest compensates the successful party for being kept out of their money during the dispute. Post-judgment interest accrues from the date of the order until payment. The applicable interest rates are set periodically by Court Determinations under the Court Procedures Rules 2006.

Practical Implications for Respondents

The costs risk changes the calculus of how you conduct your defence. Ignoring tribunal directions, such as evidence timetables, may expose you to a costs order.

Conversely, engage constructively with the process: attend conferences, put forward genuine settlement proposals where appropriate, and comply with evidence timetables.

The ACT ACAT Response Guide covers the costs framework alongside each procedural stage, so you know exactly where the risk points are.

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