Murphie v Vita Domus Pty Ltd

In the matter of *Murphie v Vita Domus Pty Ltd*, heard before Judge Barnes, the dispute concerned an application to review a costs order made by a registrar. The applicant, Mr Matthew Murphie, sought to set aside a bankruptcy notice issued by Vita Domus Pty Ltd. Following a consent order to set aside the bankruptcy notice, a costs order was made by the District Registrar. Mr Murphie subsequently applied to review this costs order.

The primary legal issue before the court was whether the costs order made by the District Registrar was appropriate, particularly in light of the consent to set aside the bankruptcy notice. The court was required to determine the correct approach to awarding costs in circumstances where a bankruptcy notice is set aside by agreement between the parties, and whether the registrar had erred in their original determination of costs.

Judge Barnes reasoned that the registrar's costs order was not made in accordance with the relevant rules and principles. Given that the bankruptcy notice was set aside by consent, the usual presumption that the party setting aside the notice should recover their costs was applicable. The court found that the registrar had failed to properly apply this principle and had made an error in the original costs determination. Consequently, the court set aside the registrar's order.

The court ordered that Vita Domus Pty Ltd pay Mr Murphie's costs in relation to the application to set aside the bankruptcy notice, to be fixed in accordance with the Federal Circuit Court Rules. The parties were directed to file an agreed calculation of these costs within 14 days, or to make written submissions if agreement could not be reached. There were no orders as to costs in relation to the review application itself.