Eva Joy Ambrus v Lee Ellen Buchanan (No. 2)

Eva Joy Ambrus brought an application against Lee Ellen Buchanan for the appointment of trustees for the sale of a property, pursuant to section 66G of the Conveyancing Act 1919 (NSW). The property was jointly owned by the parties and in a state of disrepair, leading to disputes over its maintenance and potential sale. The application was brought in the Supreme Court of New South Wales.

The legal issue that the court was required to determine was whether the usual order, that the costs of such an application be paid out of the proceeds of sale, should apply in this instance, or if the unreasonable conduct of the defendants warranted a different outcome. The court had to consider the statutory provisions, the conduct of the parties, and the overarching principle of fairness in the administration of justice.

The court found that the defendants’ conduct had been unreasonable, leading to unnecessary costs being incurred. It was held that the usual order for costs to be paid out of the proceeds of sale should not apply in this case. Instead, the defendants were ordered to pay the applicant’s costs of the application. The court emphasised the importance of discouraging unreasonable conduct and ensuring that the costs incurred due to such behaviour do not fall on the innocent party. The court also noted that the defendants’ unreasonable conduct had prolonged the dispute and caused additional distress to the applicant.

The final order of the court was that Lee Ellen Buchanan pay Eva Joy Ambrus’s costs of the application, which were assessed and fixed at a specific amount. The court also ordered that the application for the appointment of trustees for sale be proceeded with, subject to the payment of the costs by Buchanan. This decision highlights the court’s willingness to protect parties from the consequences of unreasonable conduct and to ensure that justice is served in a fair and equitable manner.