Masih & El Saeid (No. 2)

In *Masih & El Saeid (No. 2)*, Harper J of the Family Court of Australia considered applications for costs made by the applicant husband and by third parties (companies) sought to be joined by the respondent wife. The wife had sought to widen the asset pool by joining these third parties, but was wholly unsuccessful in these claims. The wife also withdrew an interim application for spousal maintenance and partial property settlement on the morning of a scheduled hearing, after the husband had prepared his evidence.

The primary legal issues before the court were whether to award costs against the wife in favour of the third parties and the husband, and on what basis. Specifically, the court had to determine if the wife's conduct in the proceedings, including her unsuccessful attempts to join third parties and her withdrawal of interim applications, warranted an award of indemnity costs. The court also considered the wife's repeated amendments to her claims and her failure to comply with previous consent orders.

Harper J reasoned that the wife's lack of success in her claims against the third parties, coupled with the considerable costs they incurred, justified making a costs order against her. The court found that the husband had incurred costs unnecessarily due to the wife's conduct, including her late amendments to her case and her abandonment of the interim hearing without explanation. The court noted that the wife had not presented any material to contest these claims.

The court ordered that the respondent wife pay the third parties' costs on a solicitor/client basis, less a previous costs order, fixed at $175,012.72. Additionally, the wife was ordered to pay the applicant husband's costs on a solicitor/client basis for specific hearing dates, fixed at $16,674.