Forster v Forster (No 2)

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.