MIL & EL

The Full Court of the Supreme Court of Western Australia, comprising Rowlands, Holden, and May JJ, considered an application by the husband for security for costs of the wife's appeal. The underlying dispute concerned property settlement and spousal maintenance, following a judgment by Guest J that dismissed the wife's property settlement application, permitted the husband to enter into a Part X Bankruptcy Act arrangement, and ordered the husband to pay limited spousal maintenance. The wife had appealed these orders, and the husband had cross-appealed regarding the spousal maintenance.

The primary legal issues before the Full Court were whether the wife should be ordered to provide security for the husband's costs of her appeal, and if so, in what amount, with a further application that her appeal be stayed in the event of non-payment. Initially, the wife had also sought to appeal the trial judge's refusal to disqualify himself, but this aspect of her appeal was subsequently discontinued. The husband's application for security for costs was ultimately amended to seek $40,000.

The Court's reasoning focused on the principles governing applications for security for costs, particularly in the context of an appeal where the financial circumstances of the parties were central to the original dispute. The husband argued that the credibility of both parties and their witnesses was fundamental to the trial judge's determination, and that the wife's financial position was such that she might be unable to meet the husband's costs if her appeal were unsuccessful. The wife's case had relied on expert valuation evidence, while the husband asserted his liabilities far exceeded his assets, necessitating a Part X arrangement.

The Court ultimately ordered the wife to provide security for the husband's costs of her appeal in the sum of $40,000, to be paid within 14 days. In default of payment, the wife's appeal was to be stayed.