Galloway and Midden (No. 2)

In Galloway and Midden (No. 2), the Full Court of the Family Court of Australia allowed appeals against property settlement orders made by the Federal Circuit Court. Ms Galloway, the appellant, challenged the property settlement orders that included properties in Country F in the pool of property, despite not having control over those properties. The court found that the trial judge had failed to identify Ms Galloway's existing legal or equitable interest in the Country F properties and did not consider how she could secure the transfer of the properties to herself. The Full Court held that the appeal was to be allowed and the matter was to be remitted for re-hearing in the Federal Circuit Court. The court also granted costs certificates to both parties for the appeal and for the re-hearing, pursuant to the Federal Proceedings (Costs) Act 1981.

The court found that the trial judge had overlooked the fact that the Country F properties were structured in a way that circumvented Country F law, which prohibits a foreigner from owning more than one property. The court held that the trial judge did not identify the nature of Ms Galloway's interest in the Country F properties or the remedies she could pursue to secure the transfer of the properties to her. Furthermore, the trial judge did not consider the costs or potential costs to Ms Galloway in pursuing such remedies.

In relation to the other grounds of appeal, the Full Court found no merit in most of them, as they were not relevant to the overall property settlement or would be reconsidered in the re-hearing. However, the court found that the costs order made by the trial judge should be set aside as a consequence of the setting aside of the property orders.