Hadlow and Davis (No. 2)

In *Hadlow and Davis (No. 2)*, the father sought an order that the mother and maternal grandparents pay his costs on an indemnity basis. The dispute concerned various aspects of the proceedings, including interim and final applications, and the father contended that he incurred costs as a direct result of the conduct of the mother and the maternal grandparents. The proceedings before Berman J in the Family Court of Australia involved allegations of sexual abuse made by the mother, which were subsequently withdrawn.

The court was required to determine whether the mother and the maternal grandparents should be subject to a costs order, and specifically whether those costs should be awarded on an indemnity basis. A key issue was the mother's unsuccessful application for a stay of orders and the impact of her withdrawn allegations of sexual abuse on the assessment of costs. The court also considered the role of the maternal grandparents, who were non-parties to the proceedings but had provided financial assistance to the mother.

Berman J reasoned that the mother's assertions, particularly the egregious nature of the withdrawn sexual abuse allegations, supported an award of indemnity costs. While the maternal grandparents had provided financial assistance, they were not considered the instigators of the litigation nor did they possess a vested interest in its outcome, which influenced the decision regarding their liability for costs.

Ultimately, the court ordered that the mother pay the father's costs in the sum of $18,350.78, to be paid to the Trust Account of Janson Lawyers on behalf of the father within 182 days of the order.