LABELLA & LABELLA (No.2)

In *Labella & Labella (No.2)*, Judge Morley of the Family Court of Australia considered an application for costs in property proceedings. The Applicant Wife sought costs against the Respondent Husband, who had withdrawn from the proceedings, leading to the matter being heard and determined on an undefended basis.

The central legal issue before the Court was whether the Applicant Wife was entitled to an order for costs against the Respondent Husband, and if so, the appropriate quantum of those costs, particularly in light of the Respondent Husband's withdrawal from the proceedings. The Court was required to consider the application of section 117(2A) of the *Family Law Act 1975* (Cth) in determining the entitlement to and quantum of costs.

Judge Morley reasoned that the Respondent Husband's conduct in withdrawing from the proceedings, thereby necessitating the final hearing on an undefended basis, justified an award of costs in favour of the Applicant Wife. The Court applied the principles of section 117(2A) of the *Family Law Act 1975* (Cth), which allows for costs orders in circumstances where a party has conducted proceedings unreasonably or vexatiously, or where it is otherwise just and equitable to do so. The Court found that the Respondent Husband's actions fell within the scope of conduct warranting a costs order.

Consequently, the Court ordered that the Respondent Husband pay the Applicant Wife's costs of the proceedings in the fixed sum of $50,000. This sum was to be paid into the trust account of the Applicant Wife's solicitors within 21 days of the making of the orders.