Klearchos & Klearchos & Ors

Case [2015] FamCAFC 217


FAMILY COURT OF AUSTRALIA

KLEARCHOS & KLEARCHOS AND ORS [2015] FamCAFC 217

FAMILY LAW  – APPEAL  – LEAVE TO APPEAL – Where the husband seeks leave to appeal against interim spousal maintenance orders – Where the wife sought that certain companies under the control of the husband be joined to the proceedings – Where the husband seeks leave to appeal against an order to fund the costs of the wife’s litigation in such sum as the husband and second, third and fourth respondents collectively pay for legal fees on a “dollar by dollar” basis – Where the wife is liable for an unusually high level of legal costs – Where the trial judge found that the husband is in a position of relative financial strength compared with that of the wife – Where the wife failed to disclose the source of the funds used by her to pay her legal fees – Where the trial judge could not know the impact of the litigation funding order on the husband’s finances as there was no evidence of the legal costs likely to be incurred – Where there was insufficient evidence before the trial judge to satisfy him that the husband could pay the ordered spousal maintenance – Appeal allowed.

FAMILY LAW  – APPEAL – APPLICATION TO ADDUCE FURTHER EVIDENCE – Where the evidence sought to be adduced may have produced a different result had it been available at trial – Where the evidence relates to the wife’s non-disclosure of her financial position – Where, had his Honour had the further evidence of her failure to disclose certain income, he may have come to a different conclusion about the wife’s capacity to fund her own legal costs and her need for spousal maintenance – Application allowed.

Family Law Act 1975 (Cth) ss 117, 117 (1), 117(2A), 117(2A)(a), 117(2A)(c)
Federal Proceedings (Costs) Act 1981 (Cth)
CDJ v VAJ (1998) 197 CLR 172
Gronow & Gronow (1979) 144 CLR 513
APPELLANT: Mr Klearchos
FIRST RESPONDENT: Ms Klearchos
SECOND RESPONDENT: Q Pty Limited
THIRD RESPONDENT: E Pty Limited
FOURTH RESPONDENT: R Pty Limited
FILE NUMBER: SYC 2977 of 2013
APPEAL NUMBER: EA 155 of 2014
DATE DELIVERED: 17 November 2015
PLACE DELIVERED: Sydney
PLACE HEARD: Sydney
JUDGMENT OF: Finn, Ainslie-Wallace & Kent JJ
HEARING DATE: 18 March 2015
LOWER COURT JURISDICTION: Family Court of Australia
LOWER COURT JUDGMENT DATE: 13 November 2014
LOWER COURT MNC: [2014] FamCA 1049

REPRESENTATION

COUNSEL FOR THE APPELLANT: Mr Lloyd SC
SOLICITOR FOR THE APPELLANT: Barkus Doolan
COUNSEL FOR THE FIRST RESPONDENT: Mr R S Bell
SOLICITOR FOR THE FIRST RESPONDENT: Neville & Hourn Legal
COUNSEL FOR THE SECOND, THIRD & FOURTH  RESPONDENTS: Mr Connor
SOLICITOR FOR THE SECOND, THIRD & FOURTH  RESPONDENTS: Argyle Legal

Orders

ORDERS made on 18 March 2015:

  1. Leave is granted to the appellant husband to rely on an Amended Notice of Appeal filed on 25 February 2015.

ORDERS:

  1. Leave is granted to the appellant husband to appeal against the orders of the Honourable Justice Johnston…

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Klearchos & Klearchos & Ors [2015] FamCAFC 217
Case
[2015] FamCAFC 217
Decision Date

CaseChat Overview and Summary

In the case of Klearchos & Klearchos & Ors, the husband sought leave to appeal against various interim spousal maintenance orders and a related costs order. These orders were made in the context of ongoing family law proceedings between the husband and the wife. The wife had previously sought to join certain companies under the husband's control to the litigation. The husband's appeal was against an order that required him to fund the wife's legal costs on a "dollar by dollar" basis, alongside other respondents. The wife had incurred unusually high legal costs, and the trial judge had found that the husband was in a relatively stronger financial position compared to the wife. However, the wife had not disclosed the source of her funds for her legal fees, and there was insufficient evidence before the trial judge to determine the impact of the litigation funding order on the husband's finances or to satisfy him that the husband could pay the ordered spousal maintenance.

The legal issues before the court included whether the husband should be granted leave to appeal against the orders, whether he should be allowed to adduce further evidence, and whether the trial judge's orders should be upheld. The court needed to consider the husband's ability to pay the ordered spousal maintenance and the impact of the litigation funding order on his finances. Additionally, the court had to assess the wife's non-disclosure of her financial position and its potential impact on the trial judge's decisions regarding the wife's capacity to fund her legal costs and her need for spousal maintenance.

The court allowed the husband's application for leave to appeal and to adduce further evidence. The court found that the husband's appeal had a real chance of success due to the wife's non-disclosure of her financial position, which might have led to a different outcome regarding her capacity to fund her legal costs and her need for spousal maintenance. The court set aside the orders made by the trial judge and remitted the matter for hearing by another judge of the Family Court. No order was made as to costs.

These orders signify a significant shift in the proceedings, potentially impacting the financial obligations and the management of the legal costs for both parties involved in the family law dispute.

Orders

Orders of the court

ORDERS made on 18 March 2015:

1.

Leave is granted to the appellant husband to rely on an Amended Notice of Appeal filed on 25 February 2015.

ORDERS:

1.

Leave is granted to the appellant husband to appeal against the orders of the Honourable Justice Johnston made on 13 November 2014.

2.

Leave is granted to the appellant husband to adduce further evidence in the appeal in accordance with the Application in an Appeal filed on 4 March 2015.

3.

The Appeal against the orders of the Honourable Justice Johnston made on

13 November 2014 is allowed and the orders are set aside.

4.

The matter is remitted for hearing by a Judge of the Family Court.

5.

There is no order as to costs.

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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