Khoury v Hiar

The parties to this appeal were Mr Khoury and Mr Hiar. The dispute concerned an order for costs made against Mr Khoury in the District Court, which Mr Khoury sought to have set aside or varied. The appeal was heard in the Court of Appeal of New South Wales.

The primary legal issue before the Court of Appeal was whether Mr Khoury, a legally assisted person, was liable for the costs awarded against him, and if so, to what extent. Specifically, the court considered whether the exception provided in section 47 of the Legal Aid Commission Act 1979 (NSW) applied to limit Mr Khoury's liability for these costs. The court also examined whether the entry of judgment for the assessed costs in the District Court automatically created a liability for those costs, irrespective of the provisions of the Legal Aid Commission Act.

The Court of Appeal reasoned that section 47 of the Legal Aid Commission Act was intended to protect legally assisted persons from liability for costs, save in specific circumstances not applicable here. The court found that the judgment entered in the District Court for the assessed costs did not override the protections afforded by the Act. Consequently, Mr Hiar was restrained from enforcing the full amount of the judgment.

The Court of Appeal ordered that Mr Hiar be restrained from enforcing the District Court judgment save to the extent of $7,343. The summons was otherwise dismissed, and Mr Hiar was ordered to pay two-thirds of the claimants' costs in the Court of Appeal.