Federal Circuit and Family Court of Australia
(DIVISION 1)
Fierro & Fierro (No 6) [2022] FedCFamC1F 1006
File number(s): SYC 7639 of 2021 Judgment of: BERMAN J Date of judgment: 16 December 2022 Catchwords: FAMILY LAW – PRACTICE AND PROCEDURE – COSTS – Where the second respondent and the ICL seek costs in relation to the applicant’s dismissed Initiating Application – Where the Initiating Application was forlorn of hope, likely to represent an abuse of process and was wholly unsuccessful – Consideration of whether the costs should be payable on a party/party basis or on an indemnity basis – Consideration of Prantage & Prantage (2013) FLC 93-544 – Orders. Legislation: Family Law Act 1975 (Cth) ss s 117(2A), 117(2A)(g) Cases cited: Fierro & Fierro(No 4) [2022] FedCFamC1F 687
Fierro & Fierro (No 5) [2002] FedCFamC1F 948
Kohan & Kohan (1993) FLC 92-340
Prantage & Prantage (2013) FLC 93-544
Division: Division 1 First Instance Number of paragraphs: 39 Date of hearing: 13 December 2022 Place: Adelaide via MS Teams Counsel for the Applicant: No appearance by or on behalf of the Applicant Counsel for the First Respondent: Litigant in person Counsel for the Second Respondent: Mr Trezise Solicitor for the Second Respondent: Dobson Mitchell Allport Counsel for the Independent Children's Lawyer: Ms Watson Solicitor for the Independent Children’s Lawyer: Tasmania Legal Aid ORDERS
SYC 7639 of 2021 FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
BETWEEN: MR FIERRO
Applicant
AND: MR A FIERRO
First Respondent
MS BIEN
Second Respondent
INDEPENDENT CHILDREN'S LAWYER
order made by:
BERMAN J
DATE OF ORDER:
16 December 2022
THE COURT ORDERS THAT:
1.Within twenty eight (28) days, Mr Fierro pay the costs of Ms Bien in the sum of THIRTY SIX THOUSAND THREE HUNDRED AND TWENTY FOUR DOLLARS ($36,324) and the costs of the Independent Children’s Lawyer in the sum of FIVE THOUSAND AND EIGHTY ONE DOLLARS ($5,081).
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).
Section 121 of the Family Law Act 1975 (Cth) makes it an offence, except in very limited circumstances, to publish proceedings that identify persons, associated persons, or witnesses involved in family law proceedings.
IT IS NOTED that publication of this judgment by this Court under a pseudonym has been approved pursuant to s 121(9)(g) of the Family Law Act 1975 (Cth).
REASONS FOR JUDGMENT
Berman J
Introduction
By Application in a Proceeding sealed 20 October 2022, Ms Bien (“the second respondent”) seeks an order that Mr Fierro (“the applicant”) pay her costs, calculated on an indemnity basis, in the sum of $36,324.
By Application in a Proceeding sealed 24 October 2022, Simone…
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- Fierro & Fierro (No 6) [2022] FedCFamC1F 1006
- Case
- [2022] FedCFamC1F 1006
- Decision Date
CaseChat Overview and Summary
The legal issues before the court were whether the costs of the second respondent and the Independent Children’s Lawyer (ICL) should be ordered on a party/party basis or on an indemnity basis. The court referred to the Full Court’s discussion in Prantage & Prantage and the decision in Kohan & Kohan to guide its determination. The court noted that while there was no inhibition to considering indemnity costs, such an order represented a significant departure from the norm. The court found that the applicant’s Amended Initiating Application was forlorn of hope and likely to be an abuse of process, intended to cause financial harm to the second respondent and the ICL. This consideration was sufficient to warrant an order for indemnity costs. The court was satisfied with the quantum of costs as properly calculated.
The court ordered that the applicant pay the costs of the second respondent and the ICL on an indemnity basis. The detailed reasons for the order were outlined in the judgment, emphasizing the applicant’s vexatious conduct and the potential financial impact on the second respondent and the ICL. The court concluded that the indemnity costs order was justified given the circumstances of the case.
Orders
Orders of the court
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Background
Background to the litigation
Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
Accordingly, I propose to order that the applicant pay the costs of the second respondent and the ICL.Consideration of party/party costs or indemnity costs The question that remains is whether the costs of the ICL and the second respondent should be payable on a party/party basis or on an indemnity basis. The discussion of the Full Court in Prantage & Prantage (2013) FLC 93-544 (“Prantage”), is of assistance in determining whether and in what circumstances, an order for indemnity costs should be made. In Prantage (supra), the Full Court referred extensively to the decision of Kohan & Kohan (1993) FLC 92-340 (“Kohan”). At [77] of Prantage (supra), it was noted that, whilst there was nothing in the Act which in any way “inhibits” a consideration of indemnity costs, the following is said in Kohan (supra) at 79,605:-…it is fundamental to the exercise of that discretion in the Family Court that the Judge should not only understand that such an order is a very great departure from the normal standard, but also that the Judge should know what the terms of the agreement are, to what extent it exceeds the parameters set by the scale, and what its likely impact will be on the financial position of each of the parties. This impact was a relevant matter to which the trial Judge should have had regard, when considering the financial circumstances of each of the parties to the proceedings under sec 117(2A)(a), or perhaps even more as a relevant matter under (g). The degree to which a costs agreement departs from the established norm and the actual financial significance of such a departure may itself be a reason for not ordering costs on an indemnity basis. Whilst I do not consider that the matters before the Court were of significant complexity, the applicant’s Amended Initiating Application was forlorn of hope and likely to represent an abuse of process given that its intention was to cause financial harm to the second respondent and, by way of collateral damage, the ICL. That consideration is sufficient to impose an order for indemnity costs. I am satisfied that the quantum of costs as has been properly calculated. I make orders as appear at the commencement of these reasons.