Megalos and Katsaros and Ors

This matter concerned an application for costs orders following earlier proceedings involving Mr J and Mr K, acting as liquidators for C Pty Ltd (in Liquidation) and D Pty Limited (in Liquidation), and Mr Calas, the trustee of the Bankrupt Estate of the Applicant. The dispute revolved around the costs and disbursements associated with a proceeding initiated by the trustee for the release of funds, the defence of that application, and a subsequent costs application.

The court was required to determine the appropriate costs orders to be made against the liquidators in favour of the trustee, and also in favour of the applicant. Furthermore, the court had to consider the liquidators' own applications for costs against the applicant and the trustee, and their subsequent application for a stay of any costs orders made against them.

Benjamin J ordered that the liquidators pay the trustee's costs and disbursements for the proceeding and the costs application on a party-party basis, to be agreed or assessed under the Family Law Rules 2004 (Cth). Similarly, the liquidators were ordered to pay the applicant's costs and disbursements for the proceeding and the costs application on the same basis. The liquidators' applications for costs against the applicant and the trustee, and their application for a stay of the costs orders, were dismissed. The court also certified that it was reasonable to engage counsel for the proceeding and the costs applications.