CIU & NAO

In the matter of CIU & NAO, the dispute concerned an application for costs on an indemnity basis brought by the defacto husband against the defacto wife. The application was heard by Foster J.

The central legal issue before the court was whether the circumstances of the case justified a departure from the usual order for costs to be assessed on a party/party basis, and instead warranted an order for costs to be paid on an indemnity basis. This required consideration of the principles governing costs orders under section 117 of the *Family Law Act 1975* (Cth) and rules 19.08 and 19.18 of the *Family Law Rules 2004* (Cth).

Foster J determined that the conduct of the defacto wife did not meet the threshold of justifying circumstances required to depart from the standard party/party costs order. Consequently, the court found that an indemnity costs order was not warranted in this instance.

The court ordered that the defacto wife, Ms Nao, pay the defacto husband’s costs of and incidental to his Amended Application in a Case filed on 6 October 2016, determined by orders made on 2 December 2016, and of and incidental to this Costs Application. These costs were to be agreed within one month of the date of the order, or in default of agreement, as assessed.