Supreme Court
New South Wales
Medium Neutral Citation: Keane v Keane [2025] NSWSC 1298 Hearing dates: On the papers Date of orders: 4 November 2025 Decision date: 04 November 2025 Jurisdiction: Equity Before: Bennett J Decision: The cross-claimant is to pay the cross-defendants’ costs thrown away by reason of the adjournment of the cross-claim, on the ordinary basis, forthwith.
Catchwords: COSTS — Party/Party — Costs orders in interlocutory proceedings — Costs thrown away by an adjournment — No issue of principle
Legislation Cited: Civil Procedure Act 2005 (NSW), s 98(1)
Evidence Act 1995 (NSW), s 189
Uniform Civil Procedure Rules 2005 (NSW), pt 18, r 42.7(2)
Cases Cited: Fiduciary Ltd v Morningstar Research Pty Ltd (2002) 55 NSWLR 1; [2002] NSWSC 432
Harrison v Schipp [2001] NSWCA 13
In the matter of Sunny International Hardware Group Pty Ltd [2025] NSWSC 348
Keynes Capital Global Limited v Guo (No 2) [2020] NSWCA 336
Netdeen Pty Ltd t/as GJ Gardner Homes v Lindfield NSW Pty Ltd (No 2) [2025] NSWCA 218
Pavlovic v Universal Music Australia Pty Ltd (No 2) [2016] NSWCA 31
Category: Costs Parties: Julie Richmond Keane (Cross-Claimant)
Jason Stuart Keane (First Cross-Defendant)
Nicole Ann Keane (Second Cross-Defendant)
Philippa Emma Keane (Third Cross-Defendant)Representation: Counsel:
Solicitors:
NJ Simpson (Cross-Claimant)
JAF Brown / D Woods (Cross-Defendants)
McCullough Robertson (Cross-Claimant)
Blanchfield Nicholls (Cross-Defendants)
File Number(s): 2024/00410615 Publication restriction: Nil
JUDGMENT
Introduction
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On the second day of what was supposed to be the separate hearing of most of the cross-claim in this matter, I made orders, following an application by the cross-defendants, adjourning the hearing of the cross-claim to a later date.
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This judgment concerns what cost consequences should follow those orders. In this judgment, I will tend to refer to the parties by their role in the cross-claim, rather than their role in the main proceedings.
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For the reasons set out below, I have determined that the appropriate costs order following the adjournment of the cross-claim is that the cross-claimant should pay the cross-defendants’ costs thrown away by the adjournment, on the ordinary basis, forthwith.
Procedural background
The substantive proceedings and the cross-claim
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A short chronology of the broader proceedings is necessary to understand what happened in these proceedings.
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By a Statement of Claim filed on 5 November 2024, Jason Keane, Nicole Keane and Philippa Keane (the cross-defendants) commenced proceedings against Julie Keane (the cross-claimant) and a company known as Derek Keane & Company Pty Ltd (not a party to the cross-claim). The cross-defendants as plaintiffs seek various declarations that property held by the cross-claimant/first defendant and second defendant is held on trust for the cross-defendants/plaintiffs.
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Without delving into the detail of what is pleaded in the Statement of Claim (SOC), a key component of the cross-defendants’ claims in the substantive proceedings is an allegation that Derek Keane (the cross-claimant’s now deceased husband and father of the cross-defendants) (the deceased) and the…
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- Keane v Keane [2025] NSWSC 1298
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- [2025] NSWSC 1298
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CaseChat Overview and Summary
The court examined the principles governing costs orders in interlocutory proceedings and the circumstances that warrant a costs order being thrown away. It considered whether the adjournment resulted in the costs being effectively lost and whether this was sufficient grounds for awarding costs. The court noted that while costs are generally thrown away by an adjournment, there may be exceptional cases where costs can be recovered if certain criteria are met. However, in this instance, the court found that no such exceptional circumstances were present, and the adjournment had indeed resulted in the costs being thrown away. As such, the court concluded that the applicant was not entitled to recover costs.
The court's reasoning was grounded in established legal principles and the specific facts of the case. It determined that there was no issue of principle that warranted departing from the general rule that costs are thrown away by an adjournment. The court emphasised that while the applicant had incurred costs, the effect of the adjournment meant that these costs were not recoverable. Consequently, the applicant's application for costs was dismissed. No further orders were made by the court.
Orders
Orders of the court
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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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