Abrugiato v Hans Peter Hansen as Executor of the Estate of Sebastiana Abrugiato [No 2]

The case of Abrugiato v Hansen [No 2] involved a dispute between the deceased's niece, the applicant, and the executor of the deceased's estate, the respondent. The primary issue in this case was whether the costs of preliminary issues should be paid out of the estate, and if so, whether the executors of the estate should bear these costs, be indemnified for their costs, or if a special costs order should be made. The case was heard in the Supreme Court of Victoria.

The legal issues that the court was required to decide were whether the preliminary issues concerning the administration of the estate or whether they involved hostile litigation between beneficiaries. The court had to determine if the executors acted unreasonably, and if so, whether a special costs order should be made. The court also had to consider whether the preliminary issues should be treated as part of the administration of the estate or as hostile litigation between beneficiaries, and if the costs should be paid out of the estate or borne by the successful parties.

In delivering the judgment, the court held that the preliminary issues were not part of the administration of the estate but rather involved hostile litigation between beneficiaries. Therefore, the costs of the preliminary issues should not be paid out of the estate. The court found that the executors acted unreasonably in incurring the costs of the preliminary issues, and as a result, they should be liable for the costs of the successful parties. The court also held that there were no exceptional circumstances warranting a special costs order. The executors were ordered to pay the costs of the preliminary issues and the proceedings.

The final orders of the court were that the executors were to pay the costs of the preliminary issues and the proceedings, and that there would be no indemnity for the executors' costs. The court did not make any special costs order, and the decision was based on existing principles of law.