Graham and Callen and Anor

In *Graham & Callen and Anor* [2014] FamCA 299, the Family Court of Australia considered cross-applications for costs filed by the applicant husband, the respondent wife, and an intervener company. The dispute arose following final orders for property settlement, with the applications for costs primarily based on the parties' conduct during the proceedings.

The court was required to determine whether the circumstances justified departing from the general rule that each party bears their own costs. This involved considering various factors outlined in section 117(2A) of the *Family Law Act 1975* (Cth), including the financial circumstances of the parties, the conduct of the parties in relation to the proceedings, whether any party was wholly unsuccessful, and any offers of settlement.

Justice Macmillan noted that neither party had been wholly unsuccessful, and while the husband was in a stronger financial position, this alone did not warrant an order for costs in his favour. The husband’s application for costs against the wife was dismissed, as the court was not satisfied that her conduct justified departing from the general rule. Similarly, the wife’s application for costs against the husband was also dismissed. The intervener’s application for costs was also dismissed, with the court finding no basis to depart from the general rule.

Consequently, the court ordered that all extant applications for costs be dismissed, meaning each party was to bear their own costs of the proceedings.