Farina & Naima (No. 3)

In *Farina & Naima (No. 3)*, Hogan J of the Federal Circuit and Family Court of Australia considered an application for costs following property settlement proceedings between the Applicant and the Respondent. The dispute concerned the allocation of legal costs incurred during the property settlement phase of their litigation.

The central legal issue before the court was the determination of which party should bear the costs of the property settlement proceedings and on what basis. The court was required to decide whether to order one party to pay the other's costs and, if so, whether those costs should be assessed on a party and party basis or on an indemnity basis.

Hogan J ordered that the Respondent pay the Applicant’s costs of and incidental to the property settlement aspect of the proceedings. These costs were to be paid on a party and party basis. The quantum of these costs was to be determined either by agreement between the Applicant and the Respondent or, failing agreement, by assessment. The payment was to be made within 30 days of the agreement or assessment of the quantum of costs.