Kells acted for a local council in development appeals relating to proposed redevelopment of a significant headland site. A component of the proposal was a number of new buildings described by the applicant as "bed and breakfast accommodation". The council contended that the the component in question, either wholly or partly, really amounted to "dwelling-houses" which required compliance with a much stricter regime under the relevant local environmental plan. In addition, prior to the hearing of the mater the applicant amended its plans in an attempt to resolve some of the council's issues with the proposal. The council's costs in relation to some components of the original proposal were sought. After hearing from both parties in the early stages of the hearing, the Land and Environment Court ruled that the applicant should pay the council's costs in relation to some components of the original proposal, and found that the council's argument regarding the proper regime for assessment of the proposal was correct. The hearing continues.