Macaulay v Macaulay (No 2)

The appeal arose from a dispute between the parties in relation to the division of their property following their divorce. The case was heard by the Family Court of Australia, which initially awarded the wife 70% of the net assets. The husband appealed to the Full Court of the Family Court, which reduced the wife’s entitlement to 60%. The wife then appealed to the High Court, which allowed the appeal and ordered a further hearing before the Family Court to determine the appropriate division of property.

The primary legal issue before the High Court was whether the Full Court erred in finding that the husband’s rejection of the wife’s Calderbank offers was not unreasonable. A Calderbank offer is a written offer of settlement made without admission of liability. The court had to consider the relevant principles and circumstances surrounding the making and rejection of these offers. The court also had to consider whether the Full Court appropriately exercised its discretion in relation to costs.

The High Court held that the Full Court erred in finding that the husband’s rejection of the wife’s Calderbank offers was not unreasonable. The Court found that the Full Court failed to give proper weight to the relevant principles and circumstances surrounding the making and rejection of these offers. The Court held that the Full Court’s conclusion that the husband’s rejection was not unreasonable was unreasonable and that the Full Court should have exercised its discretion to order costs in favour of the wife. The Court also held that the Full Court should have considered the wife’s entitlement to costs under section 105A of the Family Law Act.

The High Court allowed the appeal and remitted the matter to the Family Court for a further hearing to determine the appropriate division of property and costs. The Court did not make any orders in relation to costs, as it was of the view that the Family Court should consider the matter on the basis of the evidence and submissions presented at the hearing.