FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA
(DIVISION 1)
Magnus & Sandri (No 5) [2024] FedCFamC1F 762
File number(s): SYC 3830 of 2019 Judgment of: HARPER J Date of judgment: 13 November 2024 Catchwords: FAMILY LAW – COSTS – Where husband seeks costs in a fixed sum – Where no party wholly unsuccessful – Where both parties claimed the conduct of the other caused delay and unnecessary costs to be incurred – Where husband had been tardy and non-compliant with disclosure during substantive proceedings – Both parties of substantial wealth – Where wife rejected two settlement offers made by the husband – Where wife claimed rejection of offers was not unreasonable as balance sheet was not sufficiently settled when offers were live – Where wife’s rejection of first offer was not unreasonable as offer made early in proceedings – Where wife’s rejection of second offer was unreasonable as she was in a position to assess the strength of her case and the offer provided a better outcome than achieved in final judgment – Where wife’s failure to accept the second offer was a failure in her duty to act consistently with the overarching purpose of s 95 of the Family Law Act 1975 (Cth) – Award of costs justified in husband’s favour from date of expiry of second offer – No basis for indemnity costs established – Wife to pay 40 per cent of husband’s costs as his conduct likely increased his own costs – Costs ordered in fixed sum of $270,000 in favour of the husband. Legislation: Family Law Act 1975 (Cth) Pt VIII, ss 95, 96, 117
Federal Circuit and Family Court of Australia Act 2021 (Cth) ss 67, 68
Cases cited: Alston & Alston [2021] FedCFamC1A 96
Atkins & Hunt [2017] FamCAFC 131
Conrad & Conrad (2020) 61 Fam LR 301; [2020] FamCAFC 255
D & D (Costs) (No 2) (2010) FLC 93-435; [2010] FamCAFC 64
Edwards Madigan Torzillo Briggs Pty Ltd v Stack [2003] NSWCA 302
Fitzgerald (as child representative for A (Legal Aid Commission of Tasmania)) & Fish (2005) 33 Fam LR 123; [2005] FamCA 158
Harris & Dewell and Anor (No. 2) (2018) FLC 93-863; [2018] FamCAFC 180
Kohan and Kohan (1993) FLC 92-340; [1992] FamCA 116
Limousin v Limousin (Costs) (2007) 38 Fam LR 478; [2007] FamCa 1178
Magnus & Sandri (No 3) [2024] FedCFamC1F 449
Magnus & Sandri (No 4) [2024] FedCFamC1F 499
McFadzean v Construction, Forestry, Mining & Energy Union (No 2) [2007] VSCA 313
Moorcroft & Moorcroft (2020) 60 Fam LR 361; [2020] FamCAFC 83
Munday and Bowman (1997) FLC 92-784
Parke & The Estate of the Late A Parke (2016) FLC 93-748; [2016] FamCAFC 248
Pennisi & Pennisi (1997) FLC 92-774; [1997] FamCA 39
Prantage & Prantage (Costs) [2014] FamCA 850
Raymond & Raymond (No 2) [2024] FedCFamC1A 92
Re JJT; Ex parte Victoria Legal Aid (1998) 195 CLR 184; [1998] HCA 44
Division: Division 1 First Instance Number of paragraphs: 69 Date of hearing: 11 November…
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- AGLC
- Magnus & Sandri (No 5) [2024] FedCFamC1F 762
- Case
- [2024] FedCFamC1F 762
- Decision Date
CaseChat Overview and Summary
The court examined the respective conduct of both parties and concluded that while the husband had been tardy and non-compliant with disclosure during the proceedings, the wife's rejection of the husband's second settlement offer was unreasonable given her ability to assess the strength of her case. The court found that this rejection contravened the overarching purpose of section 95 of the Family Law Act 1975 (Cth). The court ruled that the husband's costs should be awarded from the date the second offer expired. It was determined that the husband's own conduct likely increased his costs, thus it was appropriate to order the wife to pay approximately 40 per cent of the husband's costs. The court decided against awarding indemnity costs, finding that such a basis had not been established.
In conclusion, the court ordered that the wife pay 40 per cent of the husband's costs incurred after March 2022, amounting to a fixed sum of $270,000. The court fixed this amount to avoid further litigation over costs and to ensure that all parties could finalise their financial obligations without additional delay. The wife was also ordered to pay interest on any unpaid sum in compliance with the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth). All other outstanding applications were dismissed.
Orders
Orders of the court
SYC 3830 of 2019
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
BETWEEN:
MS MAGNUS
Applicant
AND:
MR SANDRI
Respondent
ORDER MADE BY:
HARPER J
DATE OF ORDER:
13 NOVEMBER 2024
THE COURT ORDERS THAT:
1. Within 45 days of the date of these orders the Applicant Wife (“wife”) pay the Respondent Husband’s (“husband”) costs of the proceedings for the period after March 2022 fixed in the amount of $270,000.
2. The wife shall pay interest on any sum owing but unpaid in compliance with Order 1 calculated in accordance with the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth).
3. All outstanding applications be otherwise dismissed.
Note: The form of the order is subject to the entry in the Court’s records.
Note: This copy of the Court’s Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 10.14(b) Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth)), or to record a variation to the order pursuant to r 10.13 Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth).
Part XIVB of the Family Law Act 1975 (Cth) makes it an offence, except in very limited circumstances, to publish an account of proceedings that identify persons, associated persons, or witnesses involved in family law proceedings.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
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