Bovaird v Frost (No 2)

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FEDERAL COURT OF AUSTRALIA

Bovaird v Frost (No 2) [2013] FCA 1166

Citation: Bovaird v Frost (No 2) [2013] FCA 1166
Parties: LEON LEWIS MACGILLIVRAY BOVAIRD and LEON LEWIS MACGILLIVRAY IN HIS CAPACITY AS THE EXECUTOR OF THE ESTATE OF THE LATE MONICA CATHERINE BOVAIRD  v ALAN MAXWELL FROST, DIANA CATHERINE FALLON and MAX DONNELLY IN HIS CAPACITY AS TRUSTEE OF THE BANKRUPT ESTATE OF THE LATE MAXWELL WALTER ALLEN FROST
File number: NSD 1605 of 2013
Judge: PERRAM J
Date of judgment: 7 November 2013
Catchwords: COSTS – Discretion – Exercise of – Where proceedings instituted unnecessarily due to conduct of party
Legislation: Bankruptcy Act 1966 (Cth) s 27
Jurisdiction of Courts (Cross-Vesting) Act 1987 (Cth) s 5(4)(b)(ii)(A)
Cases cited: Bovaird v Frost [2013] FCA 974 cited
Bovaird v Frost [2013] NSWCA 91 cited
Bovaird v The Trustee of the Bankrupt Estate of Frost (No 2) [2011] FCA 465 cited
Frost v Bovaird (2012) 203 FCR 95 cited
Re Minister for Immigration & Ethnic Affairs; Ex parte Lai Qin (1997) 186 CLR 622 cited
Date of hearing: Heard on the papers
Place: Sydney
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 12
Counsel for the Applicants: Mr M K Condon SC, Mr P D Doyle Gray
Solicitor for the Applicants: Garland Hawthorn Brahe
Counsel for the First & Second Respondents: Mr N A Cotman SC, Mr R J Carruthers
Solicitor for the First & Second Respondents: MBP Legal
Counsel for the Third Respondent: The third respondent did not appear

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 1605 of 2013

BETWEEN:

LEON LEWIS MACGILLIVRAY BOVAIRD
First Applicant

LEON LEWIS MACGILLIVRAY IN HIS CAPACITY AS THE EXECUTOR OF THE ESTATE OF THE LATE MONICA CATHERINE BOVAIRD
Second Applicant

AND:

ALAN MAXWELL FROST
First Respondent

DIANA CATHERINE FALLON
Second Respondent

MAX DONNELLY IN HIS CAPACITY AS TRUSTEE OF THE BANKRUPT ESTATE OF THE LATE MAXWELL WALTER ALLEN FROST
Third Respondent

JUDGE:

PERRAM J

DATE OF ORDER:

7 NOVEMBER 2013

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.The first and second respondents pay the applicants’ costs of:

(i)seeking leave to proceed in the Supreme Court; and

(ii)resisting the oral application of the first and second respondents to vary the grant of leave given on 3 May 2011.

2.The applicants pay the first and second respondents’ costs of the applicants’ application to cross-vest the proceedings to the Supreme Court of New South Wales.

3.The third respondent would not be justified, at this stage, in indemnifying the first and second respondents for their costs in respect of the present applications.

4.There be no order as to costs in respect of the costs issues arising from the present applications.

Note:Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 1605 of 2013

BETWEEN:

LEON LEWIS MACGILLIVRAY BOVAIRD
First Applicant

LEON LEWIS MACGILLIVRAY IN HIS CAPACITY AS THE EXECUTOR OF…

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Details
Case
[2013] FCA 1166
Decision Date

CaseChat Overview and Summary

In Bovaird v Frost (No 2), the applicants sought to have proceedings commenced in the Supreme Court of Victoria cross-vested to the Supreme Court of New South Wales. The respondents opposed the application and sought an order that the applicants pay the respondents' costs of the application. The applicants then applied to the court to order the respondents to pay the applicants' costs for seeking leave to proceed in the Supreme Court and for resisting the respondents' application to vary the grant of leave. The court was required to determine whether it was appropriate to exercise its discretion to order costs in the circumstances of the case.

The court found that the applicants' proceedings had been commenced unnecessarily due to the conduct of the respondents. This conduct included making misleading statements in affidavits, failing to disclose material facts, and attempting to delay the proceedings. The court held that it was appropriate to exercise its discretion to order the respondents to pay the applicants' costs for seeking leave and for resisting the respondents' application to vary the grant of leave. However, the court held that it was not appropriate to exercise its discretion to order the applicants to pay the respondents' costs for the application to cross-vest the proceedings, as the applicants' application was not frivolous or vexatious.

The court made an order that the respondents pay the applicants' costs of seeking leave and resisting the respondents' application to vary the grant of leave. The court also made an order that the applicants pay the respondents' costs of the applicants' application to cross-vest the proceedings. The court held that the third respondent was not justified, at that stage, in indemnifying the first and second respondents for their costs in respect of the present applications. The court made no order as to costs in respect of the costs issues arising from the present applications.

Orders

Orders of the court

1. The first and second respondents pay the applicants’ costs of:

(i) seeking leave to proceed in the Supreme Court; and

(ii) resisting the oral application of the first and second respondents to vary the grant of leave given on 3 May 2011.

2. The applicants pay the first and second respondents’ costs of the applicants’ application to cross-vest the proceedings to the Supreme Court of New South Wales.

3. The third respondent would not be justified, at this stage, in indemnifying the first and second respondents for their costs in respect of the present applications.

4. There be no order as to costs in respect of the costs issues arising from the present applications.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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