KAPPEL & CARLSSON (No.2)

In the Family Court of Australia, His Honour Judge Wilson considered an application for costs following a substantive proceeding in which the applicant was wholly unsuccessful. The respondent had incurred considerable expense in defending the proceedings.

The court was required to determine whether rare or exceptional circumstances were a precondition to awarding costs on an indemnity basis. The court also considered the relevance of the applicant's impecuniosity to the exercise of its discretion regarding costs.

His Honour Judge Wilson determined that rare or exceptional circumstances are not a precondition for awarding costs on an indemnity basis, referencing key authorities on the matter. The court found that the applicant's impecuniosity did not preclude an award of costs on an indemnity basis. Consequently, the applicant was ordered to pay the respondent's costs of the proceeding on an indemnity basis, fixed at $26,233.90. This order was stayed until 23 November 2018.