Grace v Grace (No 9)

In the case of Grace v Grace, the dispute involved the determination of interest on costs in the context of family law proceedings. The matter was heard in the Family Court of Australia. The central issue before the court was whether an order for interest on costs must be sought at the time the costs order to which it relates is made, and whether evidence is required to support an application for interest on costs. Additionally, the court needed to determine if an order for interest on costs could be made in respect of a costs order in proceedings under the Family Law Act 1975.

The court held that an order for interest on costs need not be sought at the same time as the costs order to which it relates. It was also determined that evidence is not required to support an application for interest on costs, as the relevant discretionary considerations under the Family Law Act are sufficient. The court concluded that a costs order is an order for payment of money and that an order for interest on such costs can be made. This decision was significant in clarifying the procedural aspects of interest on costs in family law proceedings, particularly where cross-vested and non-cross-vested proceedings are involved.

The final orders of the court confirmed that interest on costs can be ordered under the Family Law Act, provided that the discretion is exercised in accordance with the relevant statutory provisions. The court's decision provided clarity on the timing and evidentiary requirements for such applications, ensuring that parties are aware of their rights and obligations in respect of interest on costs in family law matters.