FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA
(DIVISION 1) APPELLATE JURISDICTION
Farnell & Farnell [2025] FedCFamC1A 73
Appeal from: Farnell & Farnell (No 2) [2024] FedCFamC2F 1417 Appeal number(s): NAA 311 of 2024 File number(s): PAC 5064 of 2020 Judgment of: CHRISTIE J Date of judgment: 30 April 2025 Catchwords: FAMILY LAW – APPEAL – COSTS – Where the wife appeals against a fixed costs order made after a contested final hearing – Where it is argued that the parties were not afforded procedural fairness – Where parties were not aware a fixed costs order was in contemplation – Where parties were therefore not able to make submissions regarding a fixed costs order – Appeal allowed and matter re-determined. Legislation: Family Law Act 1975 (Cth)
Federal Circuit and Family Court of Australia Act 2021 (Cth)
Federal Proceedings (Costs) Act 1981 (Cth)
Federal Circuit and Family Court of Australia (Division 2) (Family Law) Rules 2021 (Cth)
Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth)
Cases cited: Beach Petroleum NL v Johnson (No 2) (1995) 57 FCR 119
Boensch v Pascoe (2019) 268 CLR 593
Bolitho and Cohen (2005) FLC 93-224
Concrete Pty Ltd v Parramatta Design (2006) 229 CLR 577
Farnell & Farnell (No 2) [2024] FedCFamC2F 1417
Farnell & Farnell [2024] FedCFamC2F 222
Fitzgerald (as child representative for A (Legal Aid Commission of Tasmania)) v Fish (2005) 33 Fam LR 123
Graham & Squibb (2019) FLC 93-892
Harris v Harris (1991) FLC 92-254
Kioa v West (1985) 159 CLR 550
Lenova & Lenova (2011) FLC 93-467
Medlon & Medlon (No 6) (Indemnity Costs) (2015) FLC 93-664
Robertson & Sento [2009] FamCAFC 49
Robinson v Higginbotham (1991) FLC 92-209
Royal Guardian Mortgage Management Pty Ltd v Nguyen (2016) 332 ALR 128
Trevi & Trevi (Re-Exercise) [2019] FamCAFC 51
U v U (2002) 211 CLR 238
Number of paragraphs: 82 Date of hearing: 25 March 2025 Place: Sydney Counsel for the Appellant: Ms Tabbernor Solicitor for the Appellant: Clear Lawyers Counsel for the Respondent: Mr Fermanis Solicitor for the Respondent: Family Focus Legal Pty Ltd ORDERS
NAA 311 of 2024
PAC 5064 of 2020FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA
DIVISION 1 APPELLATE JURISDICTIONBETWEEN: MS FARNELL
Appellant
AND: MR FARNELL
Respondent
ORDER MADE BY:
CHRISTIE J
DATE OF ORDER:
30 APRIL 2025
THE COURT ORDERS THAT:
1.The Appeal be allowed.
2.Order 1 of the Orders of 22 October 2024 be set aside.
3.The Court grants to the appellant a costs certificate pursuant to the provisions of s 9 of the Federal Proceedings (Costs) Act 1981 (Cth), being a certificate that in the opinion of the Court it would be appropriate for the Attorney-General to authorise a payment under that Act to the appellant in respect of the costs incurred by her in relation to this appeal.
4.The Court grants to the respondent a costs certificate pursuant to the provisions of s 6 of the Federal Proceedings (Costs) Act 1981 (Cth), being a certificate that in the…
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CaseChat Overview and Summary
The court acknowledges the broad discretion conferred by the Act and the Rules on judges in determining costs applications. Ms Farnell argues that she was not given procedural fairness, as neither party was aware that a fixed costs order was being contemplated. Consequently, they were unable to make relevant submissions. The court notes that the husband did not pursue an application for indemnity costs before the appeal court and limits his application to specific costs. The court dismisses the husband’s application for costs incurred during a particular hearing, as the wife was partly successful in obtaining some relief by consent shortly after. Regarding the application for the costs of the proceedings, the court finds that the husband’s arguments do not sufficiently justify a departure from the usual rule of each party bearing their own costs.
The appeal court concludes that the fixed costs order must be set aside due to the lack of procedural fairness. It grants Ms Farnell a costs certificate for the appeal, allowing the Attorney-General to authorise payment of her appeal costs. The court also grants a similar certificate for the husband. Additionally, it orders that Ms Farnell pay the husband's costs of the financial proceedings from 8 August 2022 to 25 May 2023, excluding the costs of a particular application filed on 5 May 2023, on a party/party basis. Lastly, the court orders that Ms Farnell pay the husband’s costs of the application filed on 29 May 2024, at the scale set out in the relevant rules.
In summary, the appeal court allowed the appeal, set aside the fixed costs order, and made new orders concerning the costs of the proceedings, emphasising the importance of procedural fairness in such matters.
Orders
Orders of the court
NAA 311 of 2024
PAC 5064 of 2020
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA
DIVISION 1 APPELLATE JURISDICTION
BETWEEN:
MS FARNELL
Appellant
AND:
MR FARNELL
Respondent
ORDER MADE BY:
CHRISTIE J
DATE OF ORDER:
30 APRIL 2025
THE COURT ORDERS THAT:
1. The Appeal be allowed.
2. Order 1 of the Orders of 22 October 2024 be set aside.
3. The Court grants to the appellant a costs certificate pursuant to the provisions of s 9 of the Federal Proceedings (Costs) Act 1981 (Cth), being a certificate that in the opinion of the Court it would be appropriate for the Attorney-General to authorise a payment under that Act to the appellant in respect of the costs incurred by her in relation to this appeal.
4. The Court grants to the respondent a costs certificate pursuant to the provisions of s 6 of the Federal Proceedings (Costs) Act 1981 (Cth), being a certificate that in the opinion of the Court it would be appropriate for the Attorney-General to authorise a payment under that Act to the respondent in respect of the costs incurred by him in relation to this appeal.
5. The wife pay to the husband the costs of the financial proceedings from 8 August 2022 to 25 May 2023 (excluding the application in a proceeding filed 5 May 2023) on a party/party basis as agreed or assessed.
6. The wife pay to the husband the costs of the Application in a Proceeding filed 29 May 2024 at the scale in Schedule 1 of the Federal Circuit and Family Court of Australia (Division 2) (Family Law) Rules 2021 (Cth).
Note: The form of the order is subject to the entry in the Court’s records.
Note: This copy of the Court’s Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 10.14(b) Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth)), or to record a variation to the order pursuant to r 10.13 Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth).
Part XIVB of the Family Law Act 1975 (Cth) makes it an offence, except in very limited circumstances, to publish an account of proceedings that identify persons, associated persons, or witnesses involved in family law proceedings.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
The provisions of the Act and the Rules confer a broad discretion on a judge hearing and determining a costs application.CONSIDERATION Noting that the husband did not revive his application for indemnity costs before me (and there was no cross-appeal filed), the husband’s application is limited to the following, adopting the paragraphs of the original application in a proceeding:Hearing of 22 May 2023…the [wife] pay the [husband’s] costs as agreed or assessed… on a party/party basis;Costs of the proceedings8. …the [wife] pay the [husband’s] costs as agreed or assessed… on a party/party basis;Costs of this Application9. The [wife] pay the [husband’s] costs of an incidental to this application. For her part, the wife sought that the husband’s application be dismissed. The are three distinct applications:(1)The application for the costs of the 22 May 2023 hearing;(2)The application for the “costs of the proceedings”; and(3)The applications for the costs of the costs application.Application for costs of 22 May 2023 hearing The husband seeks a departure from the usual rule in respect of costs, in respect of costs incurred by the wife’s Application in a Proceeding filed 5 May 2023. The application filed 5 May 2023 sought interim property orders, orders concerning expert evidence and vacation of the trial dates which had been allocated by the Court. That application was withdrawn and dismissed on 22 May 2023. On 30 May 2023 the parties agreed to interim property orders and final parenting orders. The justifying circumstance, upon which the applicant relies to depart from the usual rule, is that the application was withdrawn and the wife was in, in those circumstances, wholly unsuccessful. It cannot be overlooked that the wife obtained some of the relief which she sought (interim property orders) 8 days later by consent and the parties were at Court for a brief period of time on 22 May 2023 during which their parenting consent orders were made. The husband does not identify any other basis upon which the Court would find that the circumstances justify departure and I propose to dismiss the application.Application for the “costs of the proceedings” The application identifies that costs of the proceedings are sought from 30 August 2021. That date is the date the parties attended a conciliation conference. Following the conference a letter was sent by the husband’s lawyers to the wife’s lawyers by email. The husband, in his outline of submissions, identified three bases upon which costs of the proceedings should be ordered:(1)The wife’s “unsuccessful tryst in attacking the single expert report”;(2)The fact that the wife abandoned her “addback” argument on the last day of the hearing;(3)The offers made by the husband to settle the matter. It is necessary to consider whether the three matters identified are matters which would be arise under s 117(2A) of the Act. The matters raised in (1) and (2) could only be relevant considerations under s117(2A)(c), or (g).