LAD & GITTINS

In the matter of LAD & GITTINS, Austin J of the Family Court of Australia considered applications for costs made by both the husband and the wife. The wife's application for costs against the husband was dismissed due to insufficient evidence to support her allegations of fraud and non-disclosure. The husband's application for costs was successful, primarily because the wife had not accepted his reasonable offer of settlement.

The court was required to determine the appropriate basis and quantum of costs to be awarded to the husband, and whether security for those costs should be ordered. Specifically, the court had to consider the impact of the wife's failure to accept the husband's settlement offer on the costs order, and the extent to which the wife should be responsible for the husband's legal expenses incurred in relation to the final hearing and subsequent interim hearings.

Austin J reasoned that the wife's failure to accept the husband's reasonable settlement offer warranted an order for costs on an indemnity basis from the date of that offer. The court also ordered the wife to pay the husband's costs for three separate interim hearings on a party/party basis. To secure payment of these costs, the court ordered that $150,000 from the net proceeds of sale of the Suburb L property be paid to the husband's solicitors, to be held on trust pending agreement or assessment of the costs.

Consequently, the wife was ordered to pay the husband's costs of and incidental to the final hearing from 10 May 2013 on an indemnity basis, and the costs of three interim hearings on a party/party basis. The wife's application was dismissed, and security for the husband's costs was ordered by way of a payment from the sale proceeds of the Suburb L property.