Grace v Grace

In *Grace v Grace*, the appellants sought to appeal a decision of the primary judge concerning costs. The underlying proceedings involved the exercise of federal jurisdiction by a State Court under the *Family Law Act 1975* (Cth), specifically concerning the discretion conferred by section 117 of that Act regarding costs. The appeal was heard by McColl, Meagher and Barrett JJA of the Court of Appeal of the Supreme Court of New South Wales.

The central legal issue before the Court of Appeal was whether the appeal fell within the jurisdiction conferred by section 7(5) of the *Jurisdiction of Courts (Cross-vesting) Act 1987* (Cth). This required the court to determine whether an appeal seeking the re-exercise of a costs discretion, which itself arose under the *Family Law Act 1975*, constituted a "matter arising under" that Act for the purposes of the cross-vesting legislation.

The Court of Appeal held that the appeal was not a matter arising under the *Family Law Act 1975*. It reasoned that while the original costs discretion was conferred by that Act, the appeal itself, concerning the exercise of that discretion, did not engage the substantive provisions of the *Family Law Act*. Therefore, section 7(5) of the *Jurisdiction of Courts (Cross-vesting) Act 1987* did not confer jurisdiction on the Court of Appeal to hear the appeal.

Consequently, the Court of Appeal ordered that the appeal be dismissed for want of jurisdiction, and the appellants were ordered to pay the respondents' costs of the proceedings in the Court of Appeal.