[2025] FedCFamC2F 458
General information, not legal advice.
Federal Circuit and Family Court (Div 2)
2025-04-11
Original judgment source is linked above.
(1) Written Submissions and Submissions in Reply filed on 20 December 2024; and
(2) Minute of Order Sought ("Annexure A" to the Submissions); and
(3) Affidavit of the Applicant Mr Sprule filed 2 December 2024; and
(4) Affidavit of the Applicant's solicitor, Alexis Erin Vaughan, filed 2 December 2024, annexing Costs Agreements and Cost Notices of:
(a) 19 July 2023; and
(b) 30 August 2023; and
(c) 20 February 2024; and
(d) 27 February 2024; and
(e) 28 May 2024; and
(f) 15 November 2024; and
(5) Reply affidavit of Alexis Erin Vaughan filed 12 December 2024; and
(6) Affidavit of Jacqueline Stassen filed 6 December 2024; and
(7) Respondent's Written Submissions filed 16 December 2024; and
(8) Order made by Judicial Registrar Grant on 30 August 2023; and
(9) Order made by Judicial Registrar Bownds on 21 February 2024; and
(10) Order made by Judge Shoebridge on 18 November 2024; and
(11) Order made by Judge Firth on 30 May 2024; and
(12) Applicant's Financial Statement filed 2 June 2023; and
(13) Respondent's Financial Statement 3 August 2023.
(1) Applicant's Outline of Case filed 13 November 2024; and
(2) Respondent's Outline of Case filed 13 November 2024; and
(3) Response filed 3 August 2023; and
(4) Respondent's affidavit of Evidence in Chief filed 4 November 2024; and
(5) Applicant's affidavit of Evidence in Chief filed 18 November 2024; and
(6) Applicants' affidavit in Reply filed 14 November 2024; and
(7) Respondent's Financial Questionnaire filed 3 August 2023; and
(8) Respondent's Certificate of Readiness for Trial filed 29 May 2024; and
(9) Respondent's Genuine Steps Certificate filed 3 August 2023; and
(10) Applicant's Genuine Steps Certificate filed 2 June 2023.
(1) Order made by Judicial Registrar Grant on 19 July 2023; and
(2) Respondent's affidavit of 4 November 2024; and
(3) Respondent's affidavit of 15 November 2024; and
(4) Material produced in response to subpoena issued to the QLD Police filed 6 August 2024; and
(5) Material produced in response to subpoena issued to C Medical Clinic filed 10 October 2024.
(a) the Applicant is 53 years old; and
(b) the Respondent is 55 years old; and
(c) the parties commenced living together in 2016; and
(d) in late 2017, the parties purchased a property at Town D, in Queensland. The Respondent contributed $450,000 towards the purchase and the Applicant contributed $58,659; and
(e) the parties separated on a final basis in June/July 2021; and
(f) the Respondent has occupied the Town D property post separation.
(a) the Respondent to pay to the Applicant the sum of $230,730.50; and
(b) the Applicant to transfer the Town D property to the Respondent; and
(c) the parties to retain their own superannuation and other assets and liabilities.
(1) at paragraph 48 she describes an occasion when the Applicant accused her of infidelity. She says that he was verbally abusive, and she stayed the night with friends; and
(2) at paragraph 52 she deposes to a disagreement between the parties that she recorded; and
(3) she deposes to an event some time after April 2019 when she says that the Applicant pushed her into a large mirror, causing it to fall on her; and
(4) she deposes to an occasion in July 2020 when the Applicant was verbally abusive for an extended period of time culminating in a physical altercation between the Applicant and the Respondent's son. The police sought and obtained a Domestic Violence Protection Order after that event. The Protection Order named the Respondent and her two adult children as the protected parties and it was put in place for a period of five years; and
(5) the Respondent deposes to other events including threats, harassment and abuse; and
(6) in terms of the effects of the violence, the Respondent deposes to being weary (though, I think she meant wary) of further relationships with men, and she deposes to the harassment that she says was perpetrated by the Applicant and his new partner as having an effect upon her sleep, and upon her ability to cope on a day to day basis; and
(7) she deposes to hair loss and a medical condition.
(a) the medical "evidence" was presented in a form that was inadmissible; and
(b) the medical "evidence" did not, in any event, support the conclusions that would be necessary on the Respondent's case; and
(c) the Respondent's evidence in relation to the effects of her medical condition was unlikely to be persuasive.
(1) "I don't enjoy going to new places. When I do go out somewhere new, I start to have anxiety and a feeling of dread. I no longer have the same enjoyment from new experiences and prefer to stay home" (Respondent's affidavit filed 4 November 2024, paragraph 73); and
(2) "I constantly felt sick and burnt out" (Respondent's affidavit filed 4 November 2024, paragraph 79); and
(3) "Today I can't control my body and I get stressed induced [sickness] where I have to run to the toilet. I've also lost my hair. I find that I have lost my interest in going out, ..."(Respondent's affidavit filed 4 November 2024, paragraph 80).
(a) asked on multiple occasions for documents that had already been produced; and
(b) asked for documents that did not exist.
We ask that your client provide a copy of the [Sprule] [sic] family Trust deed and any minutes for the last 3 years.
If this is not available to your client, we ask that the following be disclosed to allow necessary searches.
The name of the trust as stated on the trust deed.
[Mr Sprule]'s [sic] mother and fathers full name, dates of birth and current residential address. Details of all the properties held in [Mr Sprule]'s parent's names.
Names of any siblings that may be beneficiaries to the trust.
Any ABN in connection with a company, PTY LTD, under the trust deed.
(a) he found it necessary to make repeated requests for disclosure of documents, including for example documents relating to the disposal of Motor Vehicle 1, and the Respondent's superannuation balance; and
(b) There were documents including bank statements of the Respondent, a Power of Attorney that she held in relation to her mother, and statements for a bank account held by the Respondent's mother that were only obtained by the issue of subpoena; and
(c) Those documents revealed that the Respondent had unfettered access to her mother's funds. The Respondent's mother suffers from dementia. The documents revealed that the Respondent has been using her mother's funds; and
(d) It was via those documents that the Applicant ascertained that it was in fact the Respondent's mother who contributed:
(i) the sum of $297,000 towards the purchase price of the Town D property (Applicant's affidavit filed 2 December 2024, paragraphs 59-62 and annexure "MRS-9"); and
(ii) payment towards improvements such as the fence to the Town D property.
(a) receiving mis-named documents, or additional documents not referred to in the accompanying list; and
(b) receiving the same documents on multiple occasions; and
(c) not attaching documents that were said to be attached to correspondence; and
(d) providing documents late, in some cases close to or on the day of Court events.
(a) My client's compulsory offer of settlement was made in accordance with the Rules and Orders of the Court on 20 March 2024, not 14 April 2024. > > (b) My client's compulsory offer of settlement sought a payment from the Respondent of $200,000 which based upon the valuation report that had been prepared by [F Valuations], equated to 20% of the value of the [Town D] property. > > (c) My client's compulsory offer of settlement of 20 March 2024 remained open for acceptance for nearly 8 months, until 17 November 2024, when a further offer of settlement was made by him. > > (d) My client made disclosure to the Respondent on an ongoing basis through the course of the proceedings, providing disclosure under the Rules on 13 June 2022, 14 July 2023, 19 February 2024, 20 February 2024, 29 May 2024, 30 September 2024, 1 November 2024, and 11 November 2024. > > (e) At the time of the making of his compulsory offer of settlement, my client had already provided a significant amount of disclosure to the Respondent. This encompassed the following: > > > (i) Bank statements for the period 31 July 2017 to 31 January 2018, and other periods between 1 February 2018 and 31 July 2018 that evidenced contributions of my client toward the acquisition and improvement of the [Town D] property. > > > > (ii) Bank statements for the only account held by him for the period 29 January 2021 to 31 January 2024 (save for a brief period of 17 May 2022 to 28 July 2022). > > > > (iii) Superannuation information that provided detailed information for the periods/dates 1 July 2017 to 30 June 2018, 18 May 2022, 1 July 2022 to 31 December 2022, and 16 February 2024. > > > > (iv) Documents evidencing his liabilities with [G Finance] and [H Finance]. > > > > (v) His payslips for the periods 23 April 2022 to 13 May 2022, 23 June 2023 to 30 June 2023, 7 October 2023 to 20 October 2023, and 10 February 2024 to 16 February 2024. > > (f) The Respondent was already in possession of certain documents that evidenced contributions made by my client and withheld these until 17 October 2024. My client has addressed this at paragraphs 63 and 64 of his Affidavit filed on 2 December 2024.
Failure to comply with the Pre-Action Procedures
(a) when the proceedings were first mentioned, the Respondent was given until 2 August 2023 to file her Response, an indulgence of about 17 days. She in fact filed that Response on 3 August 2023; and
(b) the Respondent failed to file her evidence in chief for Trial by the date specified in the Trial Directions. According to the Directions, she should have filed her material by 29 October 2024. Instead of doing that, the Applicant's solicitors unilaterally wrote to the Court seeking an extension of time (Applicant's affidavit filed 2 December 2024, annexure "MRS-7"). Despite being reminded about the protocol for communication with the Court, the Applicant not only failed to file an Application as per the Rules seeking a variation of the Directions, but also unilaterally wrote to the Court again. Her trial affidavit was eventually filed on 4 November 2024.
(a) Order 6 of the Orders made by Judicial Registrar Grant on 30 August 2023 obliged the parties to serve an offer of settlement on each other within 28 days after the Conciliation Conference if the matter did not settle at that conference, and to ensure that thereafter there was a current offer to settle with the other party; and
(b) Order 1 of the Orders of Judicial Registrar Bownds on 21 February 2024 repeated that obligation.
(a) the parties were required to instruct valuers to value real property by 18 September 2024; and
(b) the Applicant's solicitor sent draft written instructions to the Respondent's solicitors on 17 September 2024, that is to say, one day before the joint instructions were due; and
(c) the Respondent's solicitors did not respond until 24 September 2024.
(a) the parties were required to instruct chattel valuers by 18 September 2024; and
(b) the Applicant's solicitors wrote to the Respondent's solicitors on 17 September 2024 setting out what the Applicant understood the respective positions to be on values of chattels; and
(c) the Applicant's solicitors sent a draft letter of instructions to the Respondent's solicitors on 18 September 2024, that is to say, on the day that joint instructions were due; and
(d) the Applicant's solicitor wrote to the Respondent's solicitors about the issue on 19 September and 20 September; and
(e) the Respondent's solicitors responded on both occasions, but that response was not satisfactory to the Applicant; and
(f) the Applicant's solicitors wrote again on 25 September, but did not receive a response.
RELEVANT LEGAL PRINCIPLES REGARDING COSTS GENERALLY
[29] Generally, in this Court, each party bears their own costs unless there are circumstances that justify a costs order having regard to the matters contained in s 117 of the Family Law Act 1975 (Cth) ("the Act"), ss 68(4) and 69(4)(d)-(e) of the Federal Circuit and Family Court of Australia Act 2021 (Cth) ("the FCFCOA Act") and the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth) ("the Rules").
[30] It is uncontroversial that this Court also has power to order costs against a party's lawyer.
[31] Section 117(2A) of the Act sets out the matters to which the Court must have regard, namely:
...
(a) the financial circumstances of each of the parties to the proceedings;
(b) whether any party to the proceedings is in receipt of assistance by way of legal aid and, if so, the terms of the grant of that assistance to that party;
(c) the conduct of the parties to the proceedings in relation to the proceedings including, without limiting the generality of the foregoing, the conduct of the parties in relation to pleadings, particulars, discovery, inspection, directions to answer questions, admissions of facts, production of documents and similar matters;
(d) whether the proceedings were necessitated by the failure of a party to the proceedings to comply with previous orders of the court;
(e) whether any party to the proceedings has been wholly unsuccessful in the proceedings;
(f) whether either party to the proceedings has made an offer in writing to the other party to the proceedings to settle the proceedings and the terms of any such offer; and
(g) such other matters as the court considers relevant.
Sub-section (2) [of s 117] does not in our view as a matter of law require the judge to specify the circumstances which justify the making of an order. It does not expressly say so, and in the context of the making of an order for costs there is no sufficient basis for making an implication. Judges very frequently make orders for costs without giving reasons or making findings, even when costs are in issue. The absence of reasons or findings does not in itself indicate that a judge has erroneously exercised his discretion to award costs, though it will place an appellate court in the position of examining the circumstances and of determining for itself whether the circumstances show that the discretion was erroneously exercised. Accordingly, in the absence of some positive legislative indication we should not attribute to Parliament the requirement that a judge must make particular findings in relation to an order for costs.
(Citation omitted)
The need for clarity, precision and openness in the conduct of litigation is the responsibility of parties and their legal representatives. It flows from the statutory duty of a party and the duty under the court rules to assist the Court to further the overriding purpose to facilitate the just, quick and equitable resolution of the real issues in dispute (see Baulderstone Hornibrook Engineering Pty Limited v Gordian Runoff Limited & Ors [2008] NSWCA 243 at 161).
However, by way of general principle I would simply like to make perfectly plain my view that in the efficient and proper conduct of civil litigation, even civil litigation hard fought between parties, it should always be recognised that in the propounding of issues for trial the parties should take steps to ensure that all relevant parties to the dispute are cognisant of what the issues are.
Any practice of quietly leaving footprints in correspondence or directions hearings to be uncovered some time later in an attempt to reveal that a matter was always in issue should be discouraged firmly.
Even if something has been said, where it is evident, or indeed suspected, that the other side is proceeding on the basis of a misconception or has not appreciated something, as a general rule, efficiency, common sense and an appreciation of the costs and resources (both public and private) likely to be wasted by confusion in litigation will mandate that a party through his or her representative ensure that the other is not proceeding on a misconception or that the other does appreciate something that has been said.
Litigation is not a game. It is a costly and stressful, though necessary, evil.
...Similarly, when one looks at paragraph (f) it is quite clear that the purpose of that provision is to ensure that offers to settle, if made seriously, are considered seriously, to ensure that the cost of litigation is avoided, the workload of this Court is lightened, and one other consideration is certainly that a party with greater wealth is not placed in a position whereby he or she can wear out the other by simple attrition...
The Court has limited resources and parties need to be mindful that there is always the prospect, if justifying circumstances exist, that they litigate at their peril in terms of the potential for an Order for costs after an offer.
There may be situations where refusal to negotiate, to make an offer or to put forward an alternative order may be a factor justifying an order for costs. The failure of a party to take part in negotiations in a genuine manner may contribute to delay and cost and obstruct the proper resolution of the matter.
We think that whilst s 117(2A) does not provide any direct guidance to where weight should be given in any one particular case, it is very important for the Court to give proper consideration to written offers of settlement that have been made. The insertion of s 117C into the legislation is a clear indication of the desire of Parliament to enable parties to avoid unnecessary litigation by indicating to the other party an appropriate basis upon which litigation can be settled. The failure to heed a reasonable offer in circumstances where there is adequate knowledge of the parties at the time the offer is made to give it a proper consideration, is something to which very significant weight indeed ought normally be given. It is clearly a circumstance that would justify the making of an order for costs in favour of the husband.
APPLICATION OF THE RELEVANT LEGAL PRINCIPLES TO THE CIRCUMSTANCES OF THIS CASES
The financial circumstances of each of the parties to the proceedings
The conduct of the parties in relation to the proceedings
(a) the Applicant complains about the Respondent's contention for an unrealistic outcome from start to finish. Given the disproportionate direct financial contributions and the modest length of the relationship, the outcome was always going to lean in favour of the Respondent. It is difficult to take things much further than that given that the evidence of both parties was not tested. It seems to me that both parties were somewhat ambitious in terms of the outcome sought by them initially, but the Respondent perhaps more so. However, at least from the time that the Applicant made written offers in February and March 2024, he demonstrated some preparedness to compromise his position. The Respondent did not show any such preparedness until the eve of Trial; and
(b) the Applicant complains that the Respondent failed to engage with invitations to try and resolve the dispute without the need for litigation. Specifically, the Applicant criticises the Respondent for not accepting invitations to try and resolve the dispute through mediation in the letter that was sent pursuant to the Pre-Action Procedures requirement in the Rules. I would not give much weight to that criticism in isolation, however, I accept that that conduct is consistent with other aspects of the Respondent's conduct in these proceedings; and
(c) the Respondent's contention for an outcome that reflected a "Kennon" argument, in a context of barely any evidence supporting such a contention. The matter was listed for two days, as opposed to one, expressly because of the Respondent's "Kennon" claim (see Orders of 30 May 2024 by Judge Firth, Notation A). Though the evidence was untested, even if the Respondent's evidence was accepted at face value, it is hard to see how that would have had any, or any significant, impact on a decided outcome. There was no admissible evidence from any medical practitioner or the like. The Respondent has simply annexed what is, on the face of things, a hearsay document to her affidavit. The author of the hearsay document was not being called to be cross-examined. The admissible evidence supporting the "Kennon" claim was practically non-existent; and
(d) the Respondent makes complaint that the Applicant failed to make disclosure of a Domestic Violence Order made in 2022 protecting a subsequent partner of the Applicant from the Applicant. I take that failure into account. Whilst it might have had some relevance to the Kennon argument, it would not have overcome the other difficulties that I have identified; and
(e) similar comments apply in relation to the Respondent's contentions for an adjustment based upon medical ailments suffered by her. Again, the admissible evidence was practically non-existent; and
(f) the Respondent seeking, on multiple occasions, disclosure in relation to a Trust that the Applicant says that he has no knowledge of. It is not unusual, in this jurisdiction, for suspicion to run high. However, in the absence of at least some evidence justifying pursuit of that issue, it does appear that the Respondent wasted at least some costs in addressing that matter; and
(g) the Applicant complains about the Respondent causing delays in valuations and otherwise not complying with Rules and/or Directions. Whilst it is unquestionably true that the Respondent has failed in that regard, I have some concerns about the Applicant's own conduct also. The Applicant, for example, appears to have waited until the day before joint instructions were due to be sent to valuers to provide a draft of those instructions to the Respondent, and then complains that the Respondent did not reply the next day. Overall, I accept that the Respondent's failings on that issue outweigh the Applicant's; and
(h) failure by the Respondent to make appropriate disclosure of her financial circumstances, including failure to provide copies of documents relevant to her control of her mother's funds, in circumstances where it appears that the Respondent not only controls those funds, but makes use of them in a way that has at least some benefit to herself as well as to her mother. There is some merit in that argument.
Whether either party to the proceedings has made an offer in writing to the other party to the proceedings to settle the proceedings and the terms of any such offer.
(1) An offer of settlement at the Conciliation Conference on 21 February 2024, when he proposed settlement on the basis of a payment to him of $230,000; and
(2) A written offer dated 20 March 2024, when he proposed a payment of $200,000 to him.
(13) At 3.50pm on Friday, 15 November 2024 my office received correspondence from the Respondent's solicitor containing an offer of settlement. The parties' final hearing was due to commence at 10 am the following Monday, 18 November 2024. The offer:
(a) Contained a settlement date of 90 days from the date of a final order.
(b) Did not specify default provisions in the event the Respondent failed to settle within 90 days.
(c) Did not specify a cash sum to be paid to my client, but rather stated that the Respondent would "pay your client the sum necessary to give effect to the Applicant retaining 30% of the property pool (including superannuation)".
(d) Did not provide any particulars as to "the property pool (including superannuation)" that the offer was based upon.
(e) Provided that each party would bear their own costs of and incidental to the proceedings.
(14) If the intention of the Respondent was to base her offer of settlement upon the balance sheet contained within her Case Outline filed on 13 November 2024, then the offer of settlement would have provided for a cash payment to my client of $224,554.40. The final Orders made on 18 November 2024 provide for a more favourable outcome to my client than the terms of the Respondent's offer made late on 15 November 2024.
(a) Failure to provide requested "disclosure bank", which I assume means bank statements; and
(b) Providing bank statements that were "blanked out"; and
(c) Refusing to provide disclosure of current domestic violence orders; and
(d) "Failure to be forthcoming in adding his assets to be independently assessed valuer".
[42] A court will not lightly make an order for costs to be paid on an indemnity basis. There needs to be some circumstance of an exceptional kind to justify that course.
[43] Rule 12.13(4) requires the terms of any costs agreement to be disclosed when indemnity costs are sought. If costs are to be awarded on an indemnity basis, regard must be had to the reasonableness of the costs incurred (see for example r 12.47).
[44] When considering the factors set out in s 117(2A) of the Act, it is sufficient for one factor to be present.
...
[46] If a costs order is made, the Court may set a time for payment.
[47] Part 12.6 of the Rules deals with 'calculation of costs' and provides as follows:
12.17 Method of calculation of costs
(1) The court may order that a party is entitled to costs:
(a) of a specific amount; or
(b) as assessed on a particular basis (for example, party and party, solicitor and client or indemnity); or
(c) to be calculated in accordance with the method stated in the order; or
(d) for part of the proceeding, or part of an amount, assessed in accordance with Schedule 3.
(2) If costs are payable under the Family Law Act or these Rules, or the court orders that costs be paid and does not specify the method for their calculation, the costs are to be assessed on a party and party basis.
(3) In making an order under subrule (1), the court may consider the following:
(a) the importance, complexity or difficulty of the issues;
(b) the reasonableness of each party's behaviour in the proceeding including by having regard to the matters set out in subrule 12.08(2);
(c) the rates ordinarily payable to lawyers in comparable proceedings;
(d) whether a lawyer's conduct has been improper, unfair, unreasonable or disproportionate;
(e) the time properly spent on the proceeding, or in complying with pre‑action procedures;
(f) whether expenses (paid or payable) are fair, reasonable and proportionate.
[48] Rule 12.08(2) (referred to in r 12.17(3)(b)) provides as follows:
(2) In considering whether a party's legal costs have been fairly, reasonably and proportionately incurred, regard must be had to all relevant matters including, but not limited to, whether a lawyer representing the party, a lawyer representing any other party, or any self‑represented litigant has:
(a) complied with all relevant rules and orders of the court, including requirements that documents be filed or provided to other parties by a given date; and
(b) acted reasonably in raising, pursuing or contesting a particular allegation or issue; and
(c) made reasonable efforts, subject to the client's instructions, to resolve the dispute through negotiation, mediation or arbitration; and
(d) made reasonable efforts to narrow the issues in dispute; and
(e) filed no more interlocutory applications than are reasonably necessary in the circumstances of the proceeding; and
(f) filed no more affidavits or other documents than are reasonably necessary in the circumstances of the proceeding.
[49] The tensions created by the differing objectives sought to be addressed by a costs order awarded on a party and party basis, as opposed to an indemnity basis, were discussed in Re Wilcox, Ex parte Venture Industries Pty Ltd, where the Full Court of the Federal Court of Australia said at 156:
The issue whether costs should be ordered on a party and party basis or on an indemnity basis has acquired increasingly greater significance as the gap between the two bases appears to have grown.
The gap has highlighted the conflict between two seemingly irreconcilable objectives. The first is protecting access to justice by only exposing an unsuccessful litigant in the usual course to an order for scale costs on a party and party basis. The second is relieving a successful litigant from the burden of costs which that litigant should not have been required to incur. These and other policy factors have been considered by the courts over a very long period in order to arrive at the principles which govern the undoubted discretion of courts to depart from ordering costs on a party and party basis and ordering costs on an indemnity basis. The principles were stated by Sheppard J in Colgate-Palmolive Co v Cussons Pty Ltd [1993] FCA 536; (1993) 46 FCR 225.
[50] The Full Court went on to restate the principles from Colgate-Palmolive in the following terms:
(a) the Court ought not to depart from the rule that costs be ordered on a party and party basis unless the circumstances of the case warrant the Court in departing from the usual course;
(b) the circumstances which may warrant departure from the usual course arise as and when the justice of the case so requires or where there may be some special or unusual feature in the case to justify the Court in departing from the usual course;
(c) whilst the circumstances in cases in which indemnity costs have been ordered offer a guide, the question must always be whether the particular facts and circumstances of the case in question warrant the making of an order for costs other than on a party and party basis.
[51] While there is no exhaustive list of what circumstances may warrant an order for costs to be paid on an indemnity basis, some circumstances that have been found to justify such an order were identified by Sheppard J in Colgate-Palmolive as follows:
(a) Making allegations of fraud knowing them to be false;
(b) Making irrelevant allegations of fraud;
(c) Evidence of particular misconduct that causes loss of time to the Court and to the other parties;
(d) Commencing or continuing proceedings for some ulterior motive or in wilful disregard of known facts or clearly established law;
(e) Making allegations which ought never to have been made or the undue prolongation of a case by groundless contentions; and
(f) An imprudent refusal of an offer to compromise.
(Footnotes omitted)
[52] In Parke & the Estate of the Late A Parke, Murphy J quoted with approval the observations made by Einstein J in Idoport Pty Ltd v National Australia Bank Limited, Idoport Pty Ltd v Donald Robert Argus when that court was considering an analogous provision to that contained in r 12.17(1)(a) of the Rules:
- If the court is to fix a sum it should be "fixed broadly having regard to the information before the Court" (Beach Petroleum NL v Johnson (No 2) (1995) 57 FCR 119, at [24] cited in Idaport [sic] at [9]). The process does not "by its very nature ... envisage that a process similar to that involved in a traditional taxation or assessment of costs should take place". (Idaport [sic] at [9](v), citing Harrison v Schipp [2002] NSWCA 213; (2002) 54 NSWLR 738).
- Obviously enough, the court must act judicially in fixing or specifying a sum of costs, but:
...the requirement that the power to award a gross sum should be exercised judicially does not mean that it must be exercised in any scientific or formulaic manner; At the heart of the judicial function is the responsibility to weigh up competing factors and considerations, many of which might conflict, to reach a determination. Acting judicially carries with it an obligation to apply the rules of natural justice, to act impartially and to apply the law to the facts. ...
[53] Not only does this Court have the power to order a specific amount for costs, it is generally the preferred approach for a specific amount to be ordered rather than requiring an assessment of costs. This is because the latter approach will inevitably involve the parties in yet further conflict, delay, and cost. In finding it appropriate to make an order that costs be paid in a fixed sum, the Full Court in Warbrick & Warbrick (No 2) said that it did "not intend to permit the costs question to become, in effect, satellite litigation".
If the court is to fix a sum it should be "fixed broadly having regard to the information before the Court" ... The process does not "by its very nature ... envisage that a process similar to that involved in a traditional taxation or assessment of costs should take place".
(Citations omitted).
(a) annexes the relevant Costs Agreements entered into between the Applicant and his solicitors; and
(b) annexes Costs Notices served upon the Applicant by his solicitors at various stages throughout the proceedings; and
(c) annexes the Retainer Agreement for counsel engaged by the Applicant's solicitor in the proceedings.
(a) it is not objected to; and
(b) it offers some information upon which to formulate a reasonable outcome in this matter; and
(c) it avoids the further costs to both parties of having costs assessed and taxed.
(a) the cost of having the file assessed would be about $9,000; and
(b) costs assessed on an indemnity basis usually end up being about 85% of the actual professional fees charged between solicitor and client, plus outlays.
I certify that the preceding one hundred and twenty-five (125) numbered paragraphs are a true copy of the Reasons for Judgment of Judge Shoebridge.
Baulderstone Hornibrook Engineering Pty Limited
Gordian Runoff Limited & Ors
Baulderstone Hornibrook Engineering Pty Limited v Gordian Runoff Limited & Ors [2008] NSWCA 243
Idoport Pty Ltd v National Australia Bank Ltd [2007] NSWSC 23
In Harrison v Schipp (2002) 54 NSWLR 738; [2002] NSWCA 213
Hadid v Lenfest Communications Inc [2000] FCA 628
Ketteman v Hansel Properties Ltd [1987] AC 189
Sony Entertainment (Australia) Ltd v Smith [2005] FCA 228; (2005) 215 ALR 788
Sparnon v Apand Pty Limited [1998] FCA 164
White v Overland [2001] FCA 1333
(1995) 135 ALR 160
(2002) 54 NSWLR 738
(1991) 103 FLR 110
(2016) 314 FLR 322
(1980) 144 CLR 311
(2005) 215 ALR 788
(1993) 46 FCR 225
(1995) 57 FCR 119