Cardus and Lavrick (No 2)

Case [2020] FamCA 1103


FAMILY COURT OF AUSTRALIA

CARDUS & LAVRICK (NO. 2) [2020] FamCA 1103
FAMILY LAW – COSTS – Circumstances justifying order - Where mother seeks indemnity costs against father - Where father submits that he is impecunious and denies that his motives in the litigation were malicious or vexatious - Where father was wholly unsuccessful in the substantive proceeding and it was found by the Court that the institution and maintenance of the proceedings constituted an abuse of process – Where father fails to prove his claims of impecuniosity  - Whether impecuniosity or incapacity to meet a costs order can, per se, be determinative – Where it is found that the father’s conduct throughout the proceedings and the fact that he was wholly unsuccessful justifies the making of a costs order against him - orders that the father pay the costs of the mother on an indemnity basis – Whether costs should be fixed in a specific amount – Orders made fixing costs in a specific amount.

Family Law Act 1975 (Cth) ss 64B(2)(g), 102QB(1)(a), 117(1), 117(2), 117(2A), 117(2A)(c), 117(2A)(e)

Family Law Rules 2004 (Cth) rr 19.18(1)(a), 19.34

Akhtar & Gaber (No. 2) [2018] FamCAFC 176

Baillieu v Knight Frank (NSW) Pty Ltd v Ted Manny Real Estate Pty Ltd (1992) 30 NSWLR 359

Baum & Lokare (No 2) [2019] FamCA 292

Colgate-Palmolive and Anor v Cussons Proprietary Limited (1993) 46 FCR 225

Cooper & Oakley (No. 2) [2012] FamCAFC 187

D & D (Costs) (No. 2) (2010) FLC 93-435

Danks & McCabe (2017) FLC 93-767

Fitzgerald (as Child Representative for A (Legal Aid Commission of Tasmania)) v Fish and Anor (2005) 33 Fam LR 123

Fountain Selected Meats (Sales) Pty Ltd v International Produce Merchants Pty Ltd (1988) 81 ALR 397

Gerlach & Gerlach [2020] FamCA 841

Idoport Pty Ltd v National Australia Bank Limited & Ors, Idoport Pty Ltd v Donald Robert Argus [2007] NSWSC 23

Kohan and Kohan (1993) FLC 92-340

Limousin v Limousin (Costs) (2007) 38 Fam LR 478

Munday v Bowman (1997) FLC 92-784

Spencer and Spencer (No 3) [2020] FamCAFC 145

Stoian & Fiening [2014] FamCA 944

Stopford Malloy & Malloy and Anor (Costs) [2018] FamCAFC 6

Ugly Tribe Co. Pty Ltd v Sikola [2001] VSC 189

Yunghanns v Yunghanns (2000) FLC 93-029

Wilmer & Golding (No 2) (2017) 59 Fam LR 1

Wrenstead v Eades [2016] FLC 93-697

APPLICANT: Mr Cardus
RESPONDENT: Ms Lavrick
FILE NUMBER: MLC 8313 of 2018
DATE DELIVERED: 21 December 2020
PLACE DELIVERED: Melbourne
PLACE HEARD: Melbourne
JUDGMENT OF: McEvoy J
HEARING DATE: 31 August 2020

REPRESENTATION

COUNSEL FOR THE APPLICANT: Self-represented
SOLICITOR FOR THE APPLICANT: Self-represented
COUNSEL FOR THE RESPONDENT: Mr Carne
SOLICITOR FOR THE RESPONDENT: Mills Oakley Lawyers

Orders

  1. As soon as practicable an affidavit be filed on behalf of the mother deposing to the costs as itemised in the schedule which is Annexure A to the mother’s submissions filed 31 August 2020.

  2. Subject to the mother’s compliance with order 1 hereof, pursuant to rule 19.18(1)(a) of…

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AGLC
Cardus and Lavrick (No 2) [2020] FamCA 1103
Case
[2020] FamCA 1103
Decision Date

CaseChat Overview and Summary

In *Cardus and Lavrick (No 2)*, McEvoy J of the Family Court of Australia considered an application by the mother for indemnity costs against the father. The father had been wholly unsuccessful in the substantive proceedings, and the Court had previously found that his institution and maintenance of those proceedings constituted an abuse of process. The father contended that his impecuniosity and denial of malicious or vexatious motives should preclude an indemnity costs order, and he failed to prove his claims of impecuniosity.

The central legal issue before the Court was whether the father's alleged impecuniosity or incapacity to meet a costs order could, in itself, be determinative in preventing an order for indemnity costs. The Court was also required to determine whether the father's conduct throughout the proceedings and his complete lack of success justified making a costs order against him on an indemnity basis, and if so, whether those costs should be fixed at a specific amount.

McEvoy J reasoned that impecuniosity or an inability to pay costs does not, per se, preclude an order for indemnity costs. The Court found that the father's conduct throughout the proceedings, coupled with the fact that he was wholly unsuccessful and had abused the process of the Court, justified making an order for indemnity costs in favour of the mother. The Court further determined that it was appropriate to fix these costs in a specific amount.

Consequently, the Court ordered that the mother file an affidavit itemising her costs. Subject to compliance with this order, the mother's costs were fixed at $111,675.77 pursuant to rule 19.18(1)(a) of the *Family Law Rules 2004*. The father was ordered to pay this sum to the mother within ninety days of the filing of the affidavit.

Orders

Orders of the court

1.

As soon as practicable an affidavit be filed on behalf of the mother deposing to the costs as itemised in the schedule which is Annexure A to the mother’s submissions filed 31 August 2020.

2.

Subject to the mother’s compliance with order 1 hereof, pursuant to rule 19.18(1)(a) of the Family Law Rules 2004 the mother’s costs be fixed in the amount of $111,675.77.

3.

The father is to pay to the wife the sum of $111,675.77 within ninety (90) days of the date on which an affidavit is filed in accordance with order 1 hereof.

Note: The form of the order is subject to the entry of the order in the Court’s records.

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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