Masters & Cheyne

Case [2016] FamCAFC 255


FAMILY COURT OF AUSTRALIA

MASTERS & CHEYNE [2016] FamCAFC 255

FAMILY LAW – APPEAL – CHILD SUPPORT – Binding child support agreement – Setting aside a binding child support agreement – Apprehension of bias and pre-judgment – Distinction between bias or pre-judgment and testing the parties’ propositions – Exceptional circumstances – Hardship – Discussion of setting aside and termination of child support agreements under the Child Support (Assessment) Act 1989 (Cth) – Whether a change in the living arrangements of the child alone can amount to exceptional circumstances – Where the primary judge was in error in finding hardship, where that hardship flowed not from the changed circumstances but from the agreement itself – Where the primary judge erred in her exercise of discretion under s 136(2)(d) of the Child Support (Assessment) Act 1989 (Cth) in setting aside the binding child support agreement – Appeal allowed.

FAMILY LAW – APPEAL – COSTS – Where error established – Where the appellant and respondent are self-represented – Where the appellant will receive a windfall as a result of her success in the appeal – No order as to costs.

Child Support (Assessment) Act 1989 (Cth) Part 5, ss 4(3), 5, 12, 34B, 44(3), 80C(2), 80CA, 80D, 80E, 80F, 80G, 81, 82, 83, 84, 93, 94, 95, 136(1), 136(2), 136(2)(d), 142
Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendments (Further 2008 Budget and Other Measures) Act 2008 (Cth) Item 28, Schedule 3
Family Law Act 1975 (Cth) ss 79A(1)(d)
Federal Proceedings (Costs) Act 1981 (Cth)

Families, Community Services and Indigenous Affairs Legislation Amendment (Child Support Reform Consolidation and Other Measures) Bill 2007, Explanatory Memorandum

Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue (Northern Territory) (2009) 239 CLR 27
Ascot Investments Pty Ltd v Harper (1981) 148 CLR 337
Australian Coal and Shale Employees’ Federation v The Commonwealth (1953) 94 CLR 621
Balzano & Balzano (2010) FLC 98-048
Bass & Bass [2016] FamCAFC 64
Christian & Donald [2008] FamCAFC 44
Daley & Daley [2009] FMCAfam 398
Ebner v Official Trustee in Bankruptcy (2000) 205 CLR 337
Federal Commissioner of Taxation v Munro (1926) 38 CLR 153
Galea v Galea (1990) 19 NSWLR 263
Hoult v Hoult (2012) 48 Fam LR 507
Hoult & Hoult (2013) FLC 93-546
House v The King (1936) 55 CLR 499
Keane v Keane (2013) 50 Fam LR 120
Lovell v Lovell (1950) 81 CLR 513
Minister for Immigration and Multicultural Affairs v Jia Legeng (2001) 205 CLR 507
Norbis v Norbis (1986) 161 CLR 513
Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355
Simpson and Hamlin (1984) FLC 91-576
Vakauta v Kelly (1989) 167 CLR 568
Whitford and Whitford (1979) FLC 90-612
APPELLANT: Ms Masters
RESPONDENT: Mr Cheyne
FILE NUMBER: NCC 2311 of 2009
APPEAL NUMBER: EA 69 of 2014
DATE DELIVERED: 2 December 2016
PLACE DELIVERED: Sydney
PLACE HEARD: Sydney
JUDGMENT OF: Murphy, Aldridge & Austin JJ
HEARING DATE: 26 May 2016
LOWER COURT JURISDICTION: Federal Circuit Court of…

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AGLC
Masters & Cheyne [2016] FamCAFC 255
Case
[2016] FamCAFC 255
Decision Date

CaseChat Overview and Summary

The appeal was brought by Ms Masters against a decision of Judge Terry, made on 19 May 2014, to set aside a binding child support agreement (BCSA) between the parties. The agreement was made on 31 July 2008, under the Child Support (Assessment) Act 1989 (Cth). The primary concern of the appeal was the judge’s finding that there were exceptional circumstances to justify setting aside the agreement. This included a finding of hardship flowing from a change in the child's living arrangements. The appeal was heard by the Federal Circuit Court, and the appellant was represented by herself.

The legal issues before the court were whether the primary judge was correct in finding that the change in living arrangements of the child amounted to exceptional circumstances and whether the primary judge erred in finding that the appellant would suffer hardship as a result of the agreement. The court was also required to consider whether the primary judge exercised her discretion correctly under section 136(2)(d) of the Child Support (Assessment) Act 1989 (Cth) in setting aside the BCSA. The court found that the primary judge was in error in finding that there were exceptional circumstances justifying the setting aside of the BCSA. The court found that the hardship suffered by the appellant flowed from the agreement itself, not from the changed circumstances. The court found that the primary judge erred in her exercise of discretion in setting aside the BCSA.

The court held that the appeal should be allowed and ordered that the order made by Judge Terry on 19 May 2014 be set aside. The court further ordered that the application of Mr Cheyne, filed on 6 March 2013, seeking to set aside the BCSA be dismissed. The court found that there be no order as to costs, as the appellant would receive a windfall as a result of her success in the appeal, and both parties were self-represented.

Orders

Orders of the court

1.

The appeal be allowed.

2.

Order 2 made by Judge Terry on 19 May 2014 be set side.

3.

The Application of Mr Cheyne filed on 6 March 2013, seeking to set aside the Binding Child Support Agreement entered into between him and Ms Masters on 31 July 2008, be dismissed.

4.

There be no order as to costs.

Note: The form of the order is subject to the entry of the order in the Court’s records.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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