Carmel-Fevia and Fevia

In *Carmel-Fevia & Fevia*, the Family Court of Australia considered an application by the wife for costs and interest against the husband following property division orders. The dispute centred on whether the husband should be ordered to pay the wife's costs, and to what extent, given the significant wealth of both parties and the conduct of the proceedings.

The court was required to determine whether there were justifying circumstances under section 117 of the *Family Law Act 1975* (Cth) to depart from the general rule that each party bears their own costs. Specifically, the court had to consider the financial positions of the parties, the conduct of the proceedings, the relative success of each party, and any offers of settlement made.

Justice Cronin found that while both parties could afford their own legal fees, the husband was in a significantly superior financial position. The court rejected submissions that the husband's conduct during cross-examination was improper or that he had run the case solely on conduct. However, the court noted that the wife's offer to settle was closer to the ultimate outcome than the husband's counter-offer. Considering the complexity of the case, the length of the hearing, and the wife's relative success, the court determined it was appropriate to order the husband to pay 50 per cent of the wife's costs for the hearing from 5 November 2011 until its conclusion, on a party and party basis. The husband was also ordered to pay interest on the quantum of costs from the date of the judgment, and the costs of the costs application itself. Other costs applications arising from the property proceedings were dismissed.