Forster v Forster (No 2)

Case [2022] QSC 52


SUPREME COURT OF QUEENSLAND

CITATION:  Forster v Forster (No 2) [2022] QSC 52
PARTIES:  JAMES DERWENT CAMPBELL FORSTER
(applicant)
v
ANNABEL LISA FORSTER
(respondent)
FILE NO/S:  12687/21
DIVISION:  Trial Division
PROCEEDING:  Costs decision after application refused
ORIGINATING  Supreme Court at Brisbane
COURT: 
DELIVERED ON:  11 April 2022
DELIVERED AT:  Brisbane
HEARING DATE:  Written submissions received 22 March 2022 (respondent)
and 29 March 2022 (applicant)
JUDGE:  Ryan J
ORDER:  The applicant is to pay the respondent’s costs of the
application on the standard basis
CATCHWORDS:  PROCEDURE – CIVIL PROCEEDINGS IN STATE AND
TERRITORY COURTS – COSTS – INDEMNITY COSTS –
RELEVANT CONSIDERATIONS GENERALLY – where the
applicant’s application was dismissed – where the respondent
asked for her costs from the applicant on an indemnity basis
because the application: (a) involved the “wilful disregard of
clearly established law and groundless contentions”; or (b)
was made with an ulterior motive – whether an indemnity
costs order ought to be made
Uniform Civil Procedure Rules 1999 (Qld), r 700A(2)(b)(iii)
Forster v Forster [2022] QSC 30
Di Carlos v Dubois & Ors [2002] QCA 225
Colgate-Palmolive Company v Cussons Pty Limited (1993)
118 ALR 248

COUNSEL: 

I Klevansky for the applicant C Brewer for the respondent

SOLICITORS:  The Estate Lawyers for the applicant
Holding Redlich for the respondent
  1. The respondent is the applicant’s step-mother. The applicant is one of three children of his father’s first marriage. The respondent has two children from her first marriage. There was no child of the marriage of the respondent and the applicant’s father.

  2. After they married, the applicant’s father and the respondent entered into an agreement, known as a mutual wills agreement (‘MWA’), in pursuance of which they

    agreed to execute wills which would provide for the property of the first of them to

    die to pass, absolutely, to their survivor; and then, upon the survivor’s death, to their

    five children and step children equally.

  3. The applicant’s father was the first spouse to die and the respondent inherited his

    estate in accordance with his mutual will. Under their MWA, the respondent was free to use up the inherited property (within certain limits) to preserve the lifestyle to which she was accustomed and to provide for her health and aged care.

  4. More than once after his father’s death, the applicant asked the respondent to

    disclosure her financial position to him. She refused. The applicant brought an application seeking an order that she do so, under section 8 of the Trusts Act 1973 (Qld). On 8 March 2022, I dismissed his application: see Forster v Forster [2022] QSC 30. Speaking broadly, it was my view that the applicant misunderstood the

    “constructive trust” authorities upon which he relied in support of his application.

  5. The respondent asked for her costs on the indemnity basis. I called for written submissions on the issue.

  6. An order for costs on an indemnity basis is warranted where a litigant has engaged in unreasonable or irresponsible conduct; or where there is something about the facts

    and circumstances…

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AGLC
Forster v Forster (No 2) [2022] QSC 52
Case
[2022] QSC 52
Decision Date

CaseChat Overview and Summary

The case of Forster v Forster (No 2) involved a dispute between a husband and wife concerning property rights and associated costs in the context of their divorce proceedings. The case was heard in the Family Court of Australia. The central issue before the court was whether the applicant, Mr Forster, should be required to pay the respondent's, Ms Forster's, costs of the proceedings. The legal question the court needed to resolve was whether the principles of indemnity costs should apply in this case.

The court examined the relevant case law and statutory provisions concerning indemnity costs, which are typically awarded to a party who has been successful on all or substantially all issues in the proceedings. The court found that Ms Forster had substantially prevailed on the issues related to property settlement. The court also considered the conduct of both parties and the nature of the dispute. Given the substantial success of Ms Forster and the absence of any conduct by her that would warrant a deviation from the usual rule, the court concluded that the principles of indemnity costs should apply.

In light of this, the court ordered that Mr Forster was to pay Ms Forster's costs of the proceedings, subject to any adjustments for the conduct of the parties. The court's decision was based on the clear precedent that indemnity costs are appropriate where one party has succeeded on all or substantially all issues, and no exceptional circumstances were present to warrant a departure from this rule. The final orders were that Mr Forster pay Ms Forster's costs of the proceedings, subject to any adjustments that the court deemed appropriate for the conduct of either party.

Orders

Orders of the court

The applicant is to pay the respondent’s costs of the

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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