Galani & Galani (No. 2)

In *Galani & Galani (No. 2)*, Williams J of the Family Court of Australia considered an application for costs made by the wife against the husband. The dispute concerned the husband's Initiating Application filed on 16 December 2020, and the wife sought costs in relation to this application.

The primary legal issue before the court was whether to order costs on an indemnity basis or a party/party basis. The court was required to determine if exceptional circumstances existed to justify departing from the usual basis of costs, as outlined in established authorities such as *Worth & Worth (No. 2)*.

Williams J reasoned that while the husband's conduct was unacceptable and warranted a costs order, the circumstances did not meet the threshold for indemnity costs. The judge referred to categories of exceptional circumstances, including commencing or continuing proceedings with no chance of success, making false allegations of fraud, evidence of misconduct causing loss of time, making allegations that ought not to have been made, or unduly prolonging a case with groundless contentions. The court found that these exceptional circumstances were not present in this matter. Consequently, the court ordered the husband to pay the wife's party/party costs and disbursements incidental to the Initiating Application, fixed at $2,384.23, to be paid within 30 days.