Pekar v Jess (Trustee) (No 4)

Case [2021] FCA 534


FEDERAL COURT OF AUSTRALIA

Pekar v Jess (Trustee) (No 4) [2021] FCA 534  

File number(s): VID 81 of 2017
Judgment of: KERR  J
Date of judgment: 19 May 2021
Catchwords: COSTS – application for an alternative order as to costs following judgment in Pekar v Jess (Trustee) (No 3) [2021] FCA 466 – application rejected
Cases cited:

Holden, As Trustee of The Bankrupt Estate of Pekar v Pekar (No.6) [2020] FCCA 3385

Pekar v Jess (Trustee) (No 3) [2021] FCA 466

Division: General Division
Registry: Victoria
National Practice Area: Commercial and Corporations
Sub-area: General and Personal Insolvency
Number of paragraphs: 31
Date of last submission/s: 18 May 2021
Date of hearing: Determined on the papers
Counsel for the Applicant: Mrs Pekar in person
Solicitor for the Respondent: Rothwell Lawyers

ORDERS

VID 81 of 2017
BETWEEN:

IDA PEKAR

Applicant

AND:

TIMOTHY MARK SHUTTLEWORTH HOLDEN AS TRUSTEE FOR THE BANKRUPT ESTATE OF FIMA PEKAR

Respondent

ORDER MADE BY:

KERR  J

DATE OF ORDER:

19 MAY 2021

THE COURT ORDERS THAT:

1.Notwithstanding the Respondent having sought orders alternatively to that provided for in Order 2 of the Courts reasons of 6 May 2021 the Applicant be awarded costs in the sum of $2,000.

Note:   Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

KERR J:

  1. On 6 May 2021 the Court delivered judgment and published its reasons in Pekar v Jess (Trustee) (No 3) [2021] FCA 466 (Pekar No 3). 

  2. Pekar No 3 was a decision in respect of the Applicant's application for review of a taxation of costs. The Court set the Certificate of Taxation aside and in lieu thereof ordered that the Respondent be awarded his costs in a lesser sum. 

  3. An order was made, subject to either party seeking an alternative order, that the Respondent pay the Applicant’s costs in the sum of $2,000. That was the cost of the filing fee the Applicant incurred for filing an application for review of the taxation. The Court ordered that if any alternative order was sought the Court would determine that question on the papers.

  4. The Respondent has sought an alternative order as to costs: he submits that the Applicant should be ordered to pay the Respondent’s costs on an indemnity basis; or on the ordinary party-party basis; or that there be no order as to costs at all.

  5. These reasons assume a familiarity with those the Court delivered in Pekar No 3. They are to be read in conjunction with those reasons.

  6. The Applicant did not take the occasion to seek an alternative costs order—however she has filed an affidavit in which she alleges there has been continuing failure of Rothwell Lawyers to comply with orders of this Court. In that affidavit she also requests the Court to make an order referring Rothwell Lawyers’ conduct to the Victorian Legal Services Commissioner for disciplinary charges of professional misconduct.

  7. I reject that what is asserted in the Applicant’s affidavit is relevantly…

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Details
AGLC
Pekar v Jess (Trustee) (No 4) [2021] FCA 534
Case
[2021] FCA 534
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, the matter of Pekar v Jess (Trustee) (No 4) involved an application by the Applicant, Pekar, for an alternative order as to costs following the judgment in Pekar v Jess (Trustee) (No 3) [2021] FCA 466. The Respondent, Jess, opposed the application. The case centred on the costs incurred in the previous proceedings and the fairness of the costs order made by the Court.

The legal issues before the Court were whether the costs awarded in the previous judgment were appropriate and whether an alternative order for costs should be made in light of the Respondent’s conduct during the proceedings. The Court had to consider the principles of costs in equity, particularly focusing on the conduct of the parties and the proportionality of the costs awarded.

The Court examined the conduct of the parties and found that while the Respondent had raised several arguments against the costs, the overall conduct did not warrant a deviation from the previous costs order. The Court emphasised the importance of proportionality and fairness in the assessment of costs, ultimately rejecting the application for an alternative order. Consequently, the Court ruled that the Applicant should be awarded costs in the sum of $2,000, aligning with the previous order.

In conclusion, the Court upheld the previous costs order, reflecting its stance on the proportionality and fairness of the awarded costs. The rejection of the application for an alternative order highlights the Court's commitment to maintaining consistency in its approach to costs in similar cases.

Orders

Orders of the court

1. Notwithstanding the Respondent having sought orders alternatively to that provided for in Order 2 of the Courts reasons of 6 May 2021 the Applicant be awarded costs in the sum of $2,000.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

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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