Supreme Court
New South Wales
Medium Neutral Citation: Pang v Fong (No. 2) [2014] NSWSC 1924 Hearing dates: In chambers on the papers Date of orders: 22 December 2014 Decision date: 22 December 2014 Jurisdiction: Equity Division Before: Robb J Decision: See part 56 of these reasons
Catchwords: SUCCESSION – family provision and maintenance – family provision order to be made in favour of the plaintiff out of notional estate – costs orders to be made – plaintiff served an offer of compromise on defendant executors – family provision order to be made more favourable to plaintiff than offer of compromise – claim by plaintiff that defendant executors conducted the defence as extreme adversarial proceedings – plaintiff claims defendant executors should bear their own costs personally – order that the plaintiff’s costs be paid on the ordinary basis out of the notional estate – order having the effect that the first defendant bear the difference between the plaintiff’s costs calculated on the indemnity and ordinary bases from the date of the plaintiff’s first offer of compromise – order that the defendant executors’ costs be paid on the indemnity basis out of the notional estate – orders made to finalise claim Legislation Cited: Civil Procedure Act 2005 (NSW)
Succession Act 2006 (NSW)
Uniform Civil Procedure Rules 2005 (NSW)Cases Cited: Bradley Bates v Robert Henry Cooke (No 2) [2014] NSWSC 1322
Bukovac v Baron [2001] NSWSC 62
Chapple v Wilcox [2014] NSWCA 392
Friend v Brien (No 2) [2014] NSWSC 614
Walsh v Walsh (No 2) [2013] NSWSC 1281
Wang v D’Ambrosio [1999] NSWSC 227Category: Costs Parties: David Lai Kan Pang (plaintiff)
Susan Wai Wah Fong (first defendant)
Eva Susan Fong (second defendant)Representation: Counsel: V Hartstein (plaintiff)
M Sneddon (first and second defendants)
Solicitors: Summit Legal (plaintiff)
Lee Hourigan & Brooks (first and second defendants)
File Number(s): 2013/144328 Publication restriction: None
Judgment
Introduction
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On 17 October 2014 I delivered judgment in these proceedings, in which the plaintiff, Mr Pang, sought a family provision order under s 59 of the Succession Act 2006 (NSW) (the Act), against his sister, Mrs Susan Fong, and her daughter, Mrs Eva Fong, as executors of Mr Pang’s father’s estate,.
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I directed the parties to bring in short minutes of order to implement my findings in the principal judgment. These reasons deal with a dispute between the parties as to the orders that the Court should make, principally concerning the appropriate costs order.
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The father left his estate by his will to Mr Pang, Mrs Susan Fong, and six other persons in equal shares. However, the value of the estate was only $3000. At the time of his death, the father was entitled to the money in a number of bank accounts jointly with Mrs Susan Fong. The total amount in the accounts was $1,165,951.46. Mrs Susan Fong became entitled to all of that money by survivorship upon the death of her father.
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However, Mrs Susan Fong voluntarily treated half of the amount to which…
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- AGLC
- Pang v Fong (No. 2) [2014] NSWSC 1924
- Case
- [2014] NSWSC 1924
- Decision Date
CaseChat Overview and Summary
The primary legal issues revolved around the assessment of the family provision order, the appropriateness of the executors' conduct during the proceedings, and the allocation of costs between the parties. The court had to determine whether the executors' conduct warranted a personal cost order against them and the extent to which the plaintiff's costs should be paid from the estate.
The court found that the executors' conduct did not warrant a personal cost order against them but did constitute extreme adversarial proceedings. Consequently, the first defendant was ordered to bear the difference between the plaintiff's costs calculated on the indemnity and ordinary bases from the date of the plaintiff's first offer of compromise. The court also ordered that the plaintiff's costs be paid on the ordinary basis out of the notional estate and that the executors' costs be paid on the indemnity basis from the estate. The court made a family provision order that was more favourable to the plaintiff than the offer of compromise served by the plaintiff.
The final orders included the payment of the plaintiff's costs on the ordinary basis from the notional estate, the first defendant bearing the difference in costs between the indemnity and ordinary bases from the date of the plaintiff's first offer of compromise, and the executors' costs being paid on the indemnity basis from the notional estate. The court also made a family provision order in favour of the plaintiff out of the notional estate, which was more favourable than the plaintiff's offer of compromise.
Orders
Orders of the court
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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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