Gissing and Sheffield (No 2)

In *Gissing and Sheffield (No 2)*, the applicant sought an order for indemnity costs against the respondent in family law proceedings. The dispute concerned the circumstances justifying a departure from the usual costs orders in such matters, specifically whether the respondent's conduct warranted an order for costs on an indemnity basis, representing a "very great departure from the normal standard." The proceedings were heard by Judge O'Sullivan.

The court was required to determine whether there were exceptional circumstances present that justified making a costs order on an indemnity basis, rather than the standard basis. This involved an assessment of the respondent's conduct throughout the substantive proceedings and whether that conduct met the threshold for such a significant departure from the usual costs regime. A secondary issue, though not central to the costs determination, concerned the potential transfer of the substantive proceedings to the Family Court.

Judge O'Sullivan considered the principles governing costs orders in family law, particularly the discretion to award indemnity costs. The court noted that such orders are exceptional and require compelling justification, typically involving unreasonable or improper conduct by a party that has unnecessarily prolonged or complicated the litigation. The judge's reasoning focused on evaluating the respondent's actions against these established principles to ascertain if they amounted to the "very great departure" necessary to grant indemnity costs.