Hackshaw & Hackshaw (Costs)

In *Hackshaw & Hackshaw (Costs)*, Murphy J of the Federal Circuit Court of Australia was required to determine an application by the husband for an order that the wife pay his costs of and incidental to the proceedings, including the costs of the costs application itself.

The central legal issue before the court was the appropriate allocation of costs between the parties, particularly in light of the conduct of the proceedings and the outcome of the substantive matters. The court had to consider whether the husband's application for costs should be granted or dismissed, and what proportion of the wife's costs, if any, the husband should be ordered to pay.

Murphy J dismissed the husband's application for costs. The court ordered that the husband pay one half of the wife's party and party costs up to and including 7 December 2008, and the whole of the wife's party and party costs from 8 December 2008 onwards, including the costs of the application for costs. The orders then set out a detailed procedure for the estimation, acceptance, payment, or assessment of these costs, with provisions for indemnity costs in certain circumstances depending on the outcome of any assessment.