Boundary disputes between neighbours aren’t unusual—but when someone builds over the line, things can get messy fast. In Queensland, the Property Law Act 1974 gives property owners a way to deal with this through what’s called encroachment proceedings.
The recent case of Wardanski v Mawby (No 2) gives us a real-life example of how the Court handles this kind of situation—and what happens when people refuse to settle.
What Happened in This Case?
In this case, the plaintiffs discovered their neighbours had built a garage and retaining wall that crossed onto their property—by about 8.25 square metres. They asked the Court to make the neighbours remove the structure.
Instead, the Court ordered the land to be transferred to the neighbours. The neighbours had to pay compensation—three times the land’s value—but they got to keep the garage.
Here’s where it gets interesting: the plaintiffs were ordered to pay the neighbours’ legal costs ($160,000), even though they “won” something.
Why? Because the neighbours had made a reasonable offer to settle before trial, and the plaintiffs refused it. The Court found that decision to be unreasonable, and said the plaintiffs weren’t really the “successful party.”
What the Court Said About Legal Costs
The Court made an important legal point:
- In encroachment cases, Section 194 of the Property Law Act gives judges broad discretion over who pays costs.
- This overrides other court rules like Rule 360 of the Uniform Civil Procedure Rules, which usually reward parties who make good offers that get rejected.
So even if you get a good result in court, the judge can still order you to pay the other side’s legal costs if you behaved unreasonably.
What This Means for You
- The Court won’t always order removal – It might order compensation or transfer the land instead, depending on what’s fair.
- Costs can go either way – Even if you partially “win,” you can be ordered to pay the other side’s legal fees.
- Be reasonable – If your neighbour offers a fair settlement, refusing it could cost you more in the long run.
- Try to settle early – The Court expects neighbours to resolve these matters before it gets to trial. – If your neighbour offers a fair settlement, refusing it could cost you more in the long run.
How W & G Lawyers Can Help
At W & G Lawyers, we help Queenslanders handle boundary and encroachment disputes with clear advice and practical solutions. Whether you’re protecting your land or dealing with a complaint, we’ll guide you through your rights, risks, and best options.
📞 Contact us today at
📧 info@wglawyers.com.au
📱 0433 071 350
A quick consultation now could save you thousands in the future.
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