ARKWRIGHT AS TRUSTEE FOR THE BANKRUPT ESTATE OF MERCER & HASS

The applicant, Mr Arkwright as Trustee for the Bankrupt Estate of Mr Mercer, sought costs orders against the respondent in proceedings before Mead J of the Family Court of Australia. The dispute concerned the basis upon which the respondent's costs should be paid, with an agreement that the applicant would pay the respondent's costs.

The central legal issue before the court was whether the respondent's costs should be awarded on an indemnity basis or a party and party basis, considering the conduct of the proceedings by both parties.

Mead J determined that the respondent should be awarded costs on a mixed basis. For the period from the commencement of the proceedings up to 3 May 2018, costs were ordered on a party and party basis, fixed at $2,698.50, plus agreed or taxed fees and disbursements. For the period from 3 May 2018 onwards, excluding costs related to a specific initiating application, the respondent was awarded costs on an indemnity basis, to be assessed by a Registrar. The proceedings were also certified as fit for counsel.