Mason v Fabriola

In *Mason v Fabriola*, heard before Judge Driver, the dispute concerned the assessment of costs following the consensual dismissal of a creditor's petition. The creditor had presented a petition against the debtor, but prior to any formal determination, the parties agreed to its dismissal. This agreement necessitated a subsequent assessment of the costs associated with the petition.

The central legal issue before the court was how to approach the assessment of costs in circumstances where a creditor's petition was dismissed by consent. Specifically, the court had to determine the appropriate principles to apply when allocating the costs of such proceedings, considering that the usual adversarial process leading to a contested hearing did not occur.

Judge Driver reasoned that in the absence of a contested hearing, the court retained a discretion to determine costs. The court applied the principle that costs should generally follow the event, but acknowledged that this principle could be modified by the consensual nature of the dismissal. The court considered the conduct of the parties and the reasons for the consent dismissal in exercising its discretion. The court ultimately ordered that each party bear their own costs.