Bulow & Bulow (No 5)

The case of Bulow & Bulow (No 5) involved a dispute between Ms Bulow and Mr Bulow, which was being heard by the Federal Circuit and Family Court of Australia. The primary issue in this case was an application for costs, specifically assessing the legal principles applicable to costs in a case where proceedings have been vigorously contested and where the parties have been self-represented for a majority of the time. Additionally, the court had to consider the legal principles applicable to a Calderbank offer, which is a settlement offer made without admission of liability, and which can have implications for costs if rejected. The case also involved an outstanding order for costs from a previous trial.

The court was required to decide whether it was objectively reasonable for Mr Bulow to have rejected a settlement offer made by Ms Bulow. This decision hinged on the nature of the offer, the circumstances of the litigation, and the implications of rejecting such an offer. The court had to balance various factors under section 117(2A) of the relevant legislation to arrive at a just outcome. It also had to consider the consequences of ordering costs against Mr Bulow, particularly given his assertive attitude during the litigation and his current financial circumstances.

The court concluded that it was not objectively reasonable for Mr Bulow to reject Ms Bulow's offer, which was a pragmatic and commercially based compromise. The court found that Ms Bulow's offer was motivated by a desire to avoid the ongoing and contentious nature of the litigation. Given this, the court decided that an award for costs should be made in Ms Bulow's favour. The quantum of those costs was assessed, taking into account the previous outstanding order for costs. The court ordered Mr Bulow to pay Ms Bulow a lump sum of $15,000 in costs, in addition to the previously awarded but outstanding $5,044.

The final orders of the court were that Mr Bulow must pay Ms Bulow $15,000 within 28 days of the date of the order. This amount, together with the previously awarded but outstanding costs, would be paid by Mr Bulow to Ms Bulow. The form of the order was subject to entry in the court's records and could be subject to review or variation under specific rules.