Jensen v Pearce (No 2)

In Jensen v Pearce (No 2), the New South Wales Court of Appeal considered an appeal concerning the costs awarded in a dispute involving a claim under the *Property (Relationships) Act 1984* (NSW). The appellant had successfully challenged a judgment made by the District Court regarding this claim.

The primary legal issue before the Court of Appeal was whether there were any reasons why the general rule that costs follow the event should not apply. Specifically, the court had to determine if the appellant's conduct during the proceedings, including her refusal to allow the valuation of foreign assets and her raising of legally untenable challenges to the court's jurisdiction, warranted a departure from the usual costs order.

The Court of Appeal reasoned that while the appellant had been represented by three different sets of legal practitioners and had self-represented at trial, her conduct in refusing to allow the valuation of foreign assets was not necessarily unreasonable in the context of the overall proceedings. Furthermore, the court found that the legally untenable challenges to jurisdiction were unlikely to have incurred significant costs. Consequently, the court determined that the costs should largely follow the event, with some minor adjustments.

In lieu of the order as to costs made by the District Court on 28 March 2012, the Court of Appeal ordered that the plaintiff pay the defendant's costs with respect to her claim under the *Property (Relationships) Act*.