Chaihine and Kamal and Ors (No. 2)

In *Chaihine & Kamal and Ors (No. 2)*, the Family Court of Australia considered an application by the eighth respondent for a stay of interim financial orders made on 26 June 2020, pending an appeal to the Full Court. The dispute arose from financial proceedings between the husband and wife, where the eighth respondent, Mr F, claimed an interest in the proceeds of sale of a property at H Street, Suburb J, New South Wales. Interim orders had directed the distribution of these proceeds, and Mr F sought to prevent the operation of these orders pending his appeal.

The primary legal issue before the Court was whether to grant a stay of the interim financial orders. This required the Court to consider the principles governing applications for stays pending appeal, particularly in the context of family law proceedings. The Court also had to determine whether the eighth respondent had established a sufficient basis to warrant such an intervention, especially given his prior conduct in the proceedings, including a failure to file a formal response or points of claim asserting his alleged equitable or common law interests.

The Court reasoned that a stay is an exceptional remedy and is not granted as a matter of course. It noted that the eighth respondent had failed to comply with previous court orders requiring him to file a response and particulars of his claim. Despite being joined to the proceedings and consenting to the sale of the Suburb J property, he had not formally articulated his claim. The Court found that the evidence suggested an arrangement by way of loan between the husband and the eighth respondent, rather than a clear equitable interest in the property itself. Given the eighth respondent's non-compliance with procedural requirements and the nature of his asserted claim as a prospective creditor, the Court concluded that the threshold for granting a stay had not been met.

Consequently, the Court dismissed the eighth respondent's application for a stay of the interim financial orders made on 26 June 2020. The question of the costs associated with this application was reserved.