Council seeks recovery of legal fees after $2.4m lawsuit against it dismissed

A man tried to sue the council after an injury at the Margaret St playground in Masterton. Photo / LDR, Kate Judson

By Emily Ireland, Local Democracy Reporter

A man who unsuccessfully tried to sue Masterton District Council for $2.4 million must now pay the council about $20,000 for its legal fees.

Leon Sheeran was on a swing at Masterton’s Margaret St Reserve in late 2019 when the chain snapped and he fell, damaging his tail bone.

He claimed his injury affected his ability to work as a truck driver, his sleep, and his mental health.

Although the injury was covered by ACC, almost four years later he turned to the courts, claiming Masterton District Council had neglected its duties under the Local Government Act.

He sought $2.4m for lost earnings but the claim was not permissible under the ACC Act, which barred people from suing for personal injury, and the judge dismissed the case.

A recent court judgement showed the council had sought almost $43,000 from Sheeran to recover legal costs but Judge Andrew Skelton ruled the council was instead entitled to recover costs of about $20,000.

Sheeran, who was appealing the dismissal of his original case, sought a stay of execution of the costs order pending the outcome of his appeal, but this was declined.

In his ruling, Judge Skelton said the council and its ratepayers would be adversely affected by any stay of execution in that “the recovery of costs will be delayed, possibly for some time”.

“The council and ratepayers have had to bear the costs of this proceeding since 2023 and are now having to bear the further costs of responding to Mr Sheeran’s appeal,” Judge Skelton said.

He said Sheeran had “contributed unnecessarily” to the time and expense of the proceeding.

“In particular, Mr Sheeran was advised by the solicitors for the council and the court that his claim for compensatory damages for personal injury would likely be dismissed or struck out,” he said.

“It was explained to Mr Sheeran that his claim is barred by s 317(1) of the Accident Compensation Act 2001, but he continued to pursue the claim.

“Mr Sheeran also apparently failed to follow my direction that he should obtain legal advice on his claim, including whether his claim should be amended to seek exemplary damages.

“I also explained that he should consider carefully whether he should be pursuing any claim against the council because of the likely cost consequences.”

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