Haertsch v Whiteway (No 2)

Case [2020] NSWCA 287


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Haertsch v Whiteway (No 2) [2020] NSWCA 287
Hearing dates: On the papers
Decision date: 16 November 2020
Before: Macfarlan JA; Meagher JA; Leeming JA
Decision:

(1) First respondent pay the appellant’s costs of the appeal and cross appeal, assessed on the ordinary basis.

(2) First respondent (as plaintiff) pay 25% of the first and second defendants’ costs of the proceedings below, assessed on the ordinary basis, with the intention that the parties otherwise bear their own costs.

(3) The difference between the amount recovered from the first respondent under Orders 1 and 2 and the total of the appellant’s costs of the appeal, assessed on the indemnity basis, and the costs at first instance, assessed on the indemnity basis, be paid out of the estate of Stephne Whiteway.

(4) Note that no orders are made as to the costs of the second respondent, Jane French, to the intent that she bears her own costs of the proceedings below, and of the appeal and cross appeal.

Catchwords:

COSTS — Party/Party — General rule that costs follow the event — Application of the rule and discretion – Family provision proceedings – Where plaintiff successful at first instance but lost on appeal – Whether to make no order as to costs of first instance and appeal proceedings

Legislation Cited:

Civil Procedure Act 2005 (NSW), s 98

Family Provision Act 1982 (NSW), ss 6(4), 24, 33(1)

Trustees Act 1925 (NSW), s 59(4)

Uniform Civil Procedure Rules 2005, r 42.1

Cases Cited:

Bevilacqua v Robinson (No 2) [2008] NSWSC 520 Ray v Greenwell [2009] NSWSC 1197

Bowyer v Wood (2007) 99 SASR 190; [2007] SASC 327

Chapple v Wilcox (2014) 87 NSWLR 646; [2014] NSWCA 392

Dugac v Dugac [2012] NSWSC 192

Haertsch v Whiteway [2020] NSWCA 133

Jvancich v Kennedy (No 2) [2004] NSWCA 397

McCusker v Rutter [2010] NSWCA 318

Moussa v Moussa [2006] NSWSC 509

National Trustees Executors and Agency Company of Australasia Ltd v Barnes (1941) 64 CLR 268; [1941] HCA 3

Northern Territory v Sangare (2019) 265 CLR 164; [2019] HCA 25

Purnell v Tindale [2020] NSWSC 746

Raiola v Raiola [2014] NSWSC 1172

Re Sherborne Estate (No 2) (2005) 65 NSWLR 268; [2005] NSWSC 1003

Salmon v Osmond [2015] NSWCA 42

Sassoon v Rose [2013] NSWCA 220

Singer v Berghouse [1993] HCA 35; (1993) 67 ALJR 708

Underwood v Underwood [2009] QSC 107

Category:Costs
Parties: Adrian Haertsch (as executor of the estate of Stephne Whiteway) (first appellant)
Adrian Haertsch (as executor of the estate of Donald Whiteway) (second appellant)
Elizabeth Whiteway (first respondent)
Jane French (second respondent)
Representation:

Counsel:
J Brown (appellants)
First respondent self-represented

Solicitors:
Elyse White, Solicitor (appellants)
First respondent self-represented
File Number(s): 2019/387501
Publication restriction: Nil
 Decision under appeal 
Court or tribunal:
Supreme Court of New South Wales
Jurisdiction:
Equity Division
Citation:

[2019] NSWSC 266

Date of Decision:
8 November 2019
Before:
Lindsay J
File Number(s):

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Details
AGLC
Haertsch v Whiteway (No 2) [2020] NSWCA 287
Case
[2020] NSWCA 287
Decision Date

CaseChat Overview and Summary

In *Haertsch v Whiteway (No 2)*, the New South Wales Court of Appeal considered an application for costs following a family provision proceeding. The plaintiff, Ms. Whiteway, had been successful at first instance but subsequently lost on appeal. The appeal and cross-appeal involved the plaintiff, the first respondent, and the appellant, who was the first defendant. The second respondent, Jane French, was the second defendant.

The central legal issues before the Court of Appeal were whether to depart from the general rule that costs follow the event, and how to exercise the court's discretion regarding the costs of both the first instance proceedings and the appeal. Specifically, the court had to determine the appropriate cost orders in circumstances where the plaintiff, initially successful, ultimately failed to uphold the primary judge's decision on appeal.

The Court of Appeal reasoned that while the general rule is that costs follow the event, this rule is not absolute, particularly in family provision proceedings where there is a discretion to depart from it. The court noted that the plaintiff had been successful at first instance, which justified an award of costs in her favour at that stage. However, given her subsequent failure on appeal, the court considered it appropriate to make a partial order for the plaintiff to pay a proportion of the defendants' costs of the proceedings below. The court also ordered the first respondent to pay the appellant's costs of the appeal and cross-appeal. Crucially, the court directed that any shortfall in the appellant's costs, assessed on an indemnity basis, and the costs at first instance, also assessed on an indemnity basis, should be paid out of the estate of Stephne Whiteway. No orders were made as to the costs of the second respondent, Jane French, meaning she was to bear her own costs throughout.

Orders

Orders of the court

(1) First respondent pay the appellant’s costs of the appeal and cross appeal, assessed on the ordinary basis.

(2) First respondent (as plaintiff) pay 25% of the first and second defendants’ costs of the proceedings below, assessed on the ordinary basis, with the intention that the parties otherwise bear their own costs.

(3) The difference between the amount recovered from the first respondent under Orders 1 and 2 and the total of the appellant’s costs of the appeal, assessed on the indemnity basis, and the costs at first instance, assessed on the indemnity basis, be paid out of the estate of Stephne Whiteway.

(4) Note that no orders are made as to the costs of the second respondent, Jane French, to the intent that she bears her own costs of the proceedings below, and of the appeal and cross appeal.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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