Macedonian Orthodox Community Church St Petka Incorporated v Metropolitan Petar (No 2)

The appeal concerned costs orders made in relation to a dispute over a church trust. The parties involved were Bishop Petar and Father Mitrev (referred to as the Plaintiffs) and the Macedonian Orthodox Community Church St Petka Incorporated and certain members of its Council (referred to as the Defendants). The dispute had previously been the subject of judgments in the Equity Division of the Supreme Court of New South Wales. The appeal was heard by Beazley P, Macfarlan and Emmett JJA.

The court was required to determine whether the costs orders made at first instance and on appeal were appropriate, particularly in light of the varying degrees of success of the parties and the nature of the trust assets. Specifically, the court considered variations to existing costs orders, the setting aside of certain costs orders, and the imposition of a stay on other costs orders pending the determination of the Defendants' entitlement to indemnity from the trust assets. The court also had to determine the apportionment of the Plaintiffs' and Defendants' costs of the appeal.

The Court of Appeal varied an order made by Brereton J by adjusting the percentages of costs payable. It also set aside an order made by Young CJ in Eq concerning the Defendants' costs payable to the Attorney-General of New South Wales. A stay was imposed on the varied order of Brereton J and the costs orders made by Young CJ in Eq against the Defendants, to remain in effect until the determination of the Defendants' entitlement to indemnity from the trust assets or a further date appointed by the court. The court ordered the Association to pay 75 per cent of the Plaintiffs' costs of the appeal and the Plaintiffs to pay 50 per cent of the Council Members' costs of the appeal.