(a) Grounds 1 and 2
22Grounds 1 and 2 provide as follows:
"1. The Supreme Court costs have been assessed in contravention of Section 47 of the Legal Aid Commission Act 1979. The funding of $15,000 by the Legal Aid Commission was all that the Defendant was entitled to in the way of costs in relation to the costs of the Supreme Court Costs.
2. The Review Panel and the Assessor erred by reducing the total Costs as determined in respect of the three sets of proceedings, by $15,000.00 as paid by the Legal Aid Commission to the Defendant under s.47 of the Legal Aid Commission Act 1979."
23Section 47 of the Legal Aid Commission Act 1979 provided:
"47 Payment of costs awarded against legally assisted persons
(1) Where a court or tribunal makes an order as to costs against a legally assisted person:
(a) except as provided by subsections (2), (3), (3A), (4) and (4A), the Commission shall pay the whole of those costs, and
(b) except as provided by subsections (3), (3A), (4) and (4A), the legally assisted person shall not be liable for the payment of the whole or any part of those costs.
(2) The Commission shall not pay an amount in excess of $5,000 (or such other amount as the Commission may from time to time determine):
(a) except as provided by paragraph (b), in respect of any one proceeding, or
(b) in respect of each party in any one proceeding, being a party who has, in the opinion of the Commission, a separate interest in the proceeding.
(3) The Commission shall not be liable to pay any costs incurred by or on behalf of a person in respect of a period during which that person was not a legally assisted person (even though those costs were ordered to be paid at a time when that person was a legally assisted person) and that person shall be liable for the payment of those costs.
(3A) Where a court or tribunal makes an order as to costs against a legally assisted person in respect of proceedings for a criminal offence in which the legally assisted person was the accused person, the legally assisted person shall be liable for the payment of the whole of those costs.
(4) Where a court or tribunal makes an order as to costs against a legally assisted person in respect of:
(a) an appeal, or an application for a new trial, made on the ground that money awarded to the legally assisted person is inadequate,
(b) an action in which the legally assisted person is successful against one or more, but not all, of the other parties to the action,
(b1) an action in which the legally assisted person is successful after having been unsuccessful in interlocutory proceedings related to the action,
(c) an action heard and determined pursuant to an order under section 42 of the Civil Procedure Act 2005,
(d) an action brought under the Family Law Act 1975 of the Commonwealth, or
(e) an action brought under the Child Support (Assessment) Act 1989 of the Commonwealth,
the Commission may decline to pay the whole, or such part as it determines, of those costs and those costs or that part which the Commission has declined to pay shall be paid by the legally assisted person.
(4A) If a court or tribunal makes an order as to costs against a legally assisted person on the basis that the person did not accept an offer of compromise made in proceedings (being an offer made in accordance with rules of court or an offer of a prescribed kind):
(a) the Commission may decline to pay the whole, or such part as it determines, of those costs to the extent that they are costs incurred by the party that made the offer after the day on which the offer was made, and
(b) the legally assisted person is liable for payment of any of those costs that the Commission has declined to pay.
(5) The Commission shall give notice, in writing, to a legally assisted person, the whole or part of whose costs it has, under subsection (4) or (4A), declined to pay, of the decision to decline payment of the costs within 14 days after the decision is made.
(6) Where a decision to decline to pay the whole or part of any costs is made by a person or committee acting in pursuance of a delegation or authorisation under section 69, the person or committee shall, in a notice given under subsection (5), inform the legally assisted person that he or she has a right of appeal to a Legal Aid Review Committee against the decision.
(7) Where a person or committee referred to in subsection (6) declines the payment of costs under subsection (4) or (4A), the person or committee shall record the reasons for the decision to decline the payment.
(8) Any amount paid by the Commission under this section shall be deemed to have been paid by the legally assisted person on whose behalf it is paid."
24It was common ground between the parties that $15,000 was the amount that was payable by the Legal Aid Commission in respect of costs pursuant to section 47(1)(b) of the Legal Aid Commission Act 1979, and that this amount had been paid.
25In that circumstance, it is appropriate that the amount of costs owing in respect of the costs order should be reduced by the $15,000 paid by the Legal Aid Commission.
26However, in ground one the appellants argue that Horwath is only entitled to $15,000 for the costs of the Supreme Court proceedings. In other words, the grant of legal aid to Mr Wende is said to have had the additional beneficial result of protecting Mrs Wende and Mr Lloyd against any order to pay the costs of those proceedings: that the grant of legal aid to Mr Wende precluded other non-legally assisted persons from being liable for the payment of costs ordered.
27Ground one does not identify a decision on a matter of law by the Review Panel, and I have been unable to find such a decision. That may be because ground one of the appeal does not appear as one of the grounds of review (see Appeal Book page ("AB") 359-366) and thus the Review Panel was not required to pronounce upon it.
28Before the Review Panel, the appellants referred to the costs assessor's comment that the appellants "raised totally spurious submissions such as submitting that the three of them only equated to one party and the grant of Legal Aid to [Mr Wende] only was a grant of Legal Aid to all of them" and raised (at AB 364-365) the following "ground" (ground 22):
"This is not so. We knew the grant of Legal Aid was only to [Mr Wende], but submitted that the three [Appellants] did not have separate interests in the matter, and no separate costs orders were made for each person of the party. The Costs Assessor cannot say that this submission is spurious".
29At ground 30 (AB 366) the appellants further stated:
"30. The Costs Assessor has taken on the role of a judge in deciding that the Costs Respondents were not one party, but were three parties in the Supreme Court proceedings. The Costs Assessor did not have the power to make such a decision. The caselaw quoted by the Costs Assessor, Khoury & Anor v Hiar & Anor [2006] NSWCA 47, does not support her decision. Only one originating process was filed by the plaintiffs, not three. There were not three parties with separate interests as the Costs Assessor seems to claim. Only one costs assessment has taken place, with only one determination. Therefore, Mr Wende was covered for all of the case in the Supreme Court while his grant of Legal Aid was in effect. The Costs Applicant is trying to circumvent Section 47 of the Legal Aid Commission Act 1979. The fact that Mr Wende is married and has a partner in the nursery cannot give the Costs Applicant extra rights. It is not a matter of Mr Wende evading payment of costs and Mrs Wende and Mr Lloyd having to step in. The costs have simply been settled by the Legal Aid Commission."
30The Review Panel determined that ground 22 was not a ground of review, and that the assessor was entitled to make the observation she did, and in respect of ground 30 that the ground was not made out, having no merit.
31Although it is not clear from the appeal grounds in the summons, I am prepared to assume that ground one asserts that the response of the Review Panel in dealing with grounds 22 and 30 of the summons constituted an erroneous decision as to a matter of law by the Review Panel.
32The appellants' challenge is that the grant of legal aid to one party, Mr Wende, operates to confine the costs recoverable by Horwath from the others. This is said to follow from there being one or more of the following:
(a) one party comprising three persons with the same interest rather than three parties,
(b) one originating process,
(c) one costs assessment,
(d) one determination,
(e) a marriage between two of the appellants,
(f) a partnership between two or more of the appellants.
33The submission is without substance. That the three appellants were persons having the same interest, who commenced proceedings by the same originating process, does not deny that they constituted three parties. A party is a person joined to legal proceedings (cf Vocisano v Vocisano [1974] HCA 14; (1974) 130 CLR 267 at [10]-[12]). That includes each of the appellants. Ordinarily a costs order against several persons renders them each jointly and severally liable for the assessed costs (see Australian Communications and Media Authority v Mobilegate Ltd A Company Incorporated in Hong Kong (No 3) [2009] FCA 1154 at [5] of the Reasons for Judgment), and this is unaffected by them having the same interest, or there being one costs assessment or determination, or them being married or in partnership.
34No other provision was identified by the appellants as supporting the argument that the grant of legal aid to Mr Wende provided a shield to Mrs Wende and Mr Lloyd against the order for costs.
35The appellants' written submissions correctly state (at [41]): "The significance of s.47 (1)(b) is that a legally assisted person could not be liable for the payment of the whole or any part of the costs", but then reflects (at [42]):
"...the question then arises as to whether the provision goes the next step of limiting the costs that could be recovered against [the appellants] to the amount as provided by the Legal Aid Commission".
36Mr Sharpe, who appeared for the appellants, referred to a decision of Palenzuela v Palaje [2010] NSWSC 836 as support for this proposition. This decision provides no support.
37The appellants also relied on the decision in Maher v Network Finance Ltd (1986) 4 NSWLR 694, where the Court of Appeal at 698 said "...the direction in s 47(1)(a) to the Commission to pay the whole of the costs is a reference to the costs which a tribunal or court has ordered." The appellants appeared to submit that the costs "ordered" in this passage would apply in the present case to include the costs ordered against Mrs Wende and Mr Lloyd, so as to bring them within the umbrella of the Legal Aid Commission grant. In other words, the Commission would "pay the whole of the costs" ordered.
38But the order in Maher did not deal with multiple defendants. The Commission may be liable for the whole of the costs ordered against a party to whom it has granted legal aid (up to the statutory maximum), but it is not liable to pay costs ordered against other parties, even if the costs the subject of the order are the same. In any event, the significant provision of section 47 is not so much section 47(1)(a), which deals with the Commission's liability, but section 47(1)(b), which exempts the "legally assisted person" from liability for the payment of any part of the costs ordered against the "legally assisted person" but does not purport to have any impact on persons who are not legally assisted, nor any impact on costs orders made against persons who are not legally assisted. Section 47(3) plainly indicates that persons not legally assisted remain liable for costs.
39Section 47 in its terms only applies to costs ordered by a court or tribunal and does not extend to costs payable under a mortgage covenant or costs payable under any Supreme Court rule. There is no suggestion in either Palenzuela or Maher that the protection offered by section 47(1)(b) is available to persons other than the person to whom a grant of legal aid has been made.
40Accordingly, while Mr Wende could not be liable for any other Supreme Court costs (incurred from 27 June 2007) by reason of section 47(1)(b), Mrs Wende and Mr Lloyd remained liable for the whole of the Supreme Court costs assessed by the assessor less the $15,000 already paid by the Legal Aid Commission in respect of those costs.
41It follows that I must dismiss ground one. Horwath was entitled to recover unpaid Supreme Court costs from appellants other than Mr Wende, and was also entitled to recover further costs from Mr Wende that were incurred prior to the date of 27 June 2007 when the grant of legal aid commenced. There is no error by the Review Panel.
42In the written submissions of the appellants ground 2 seems to include as its principal complaint that the reduction of the costs by $15,000 left Mr Wende in the position where Horwath could seek to recover from him other Supreme Court costs. No error on a matter of law is identified by the appellants.
43It is true that the assessment of costs produced a figure for which only the appellants other than Mr Wende were liable. It distinguished the assessed costs, and the net amount owing. And some of those costs owing were Supreme Court costs covered by the grant of legal aid for which Mr Wende could bear no responsibility.
44However, to allege an error in this regard is to misunderstand the effect of a certificate of assessment, which is to assess the quantity of costs, not liability. A similar problem arose in the decision of Khoury & Anor v Hiar & Anor [2006] NSWCA 47. In that case it was asserted (at [16]) that the assessor was wrong to assess the costs at $48,532.87 rather than at $15,000 which represented the maximum amount payable by the Legal Aid Commission. In that case, unlike in the present case, the beneficiary of the costs order had taken the further step of registering the certificate for the larger amount as a judgment.
45Yet the court held at [43]: "I do not think s 47 precluded an assessment of the whole of the costs. Assessment of costs was concerned with quantification, not with liability" (per Giles JA, agreed to by Beazley JA (at [1]) and Bryson JA (at [59])).
46It is apparent from Khoury that Horwath is entitled to an assessment of the costs, whatever be the effect of section 47 of the Legal Aid Commission Act 1979. Indeed, on the authority of that decision, it is entitled to a judgment to that effect (see Khoury [44]-[46]). However, Horwath could only enforce the costs order against Mr Wende subject to Mr Wende's entitlements under section 47. Thus, any enforcement action would have to give credit to Mr Wende for all of the costs covered by the grant of legal aid, namely those costs in the Supreme Court proceedings incurred on and from 27 June 2007. Those particular costs could be readily ascertained (see ground nine below).
47On the authority of Khoury, the assessor was correct in determining the total amount of costs and noting a credit of $15,000 that had been paid in respect of those costs, and the Review Panel was correct in affirming this component of the decision of the assessor.