Rayner v Australia and New Zealand Banking Group Ltd

In the matter of Rayner v Australia and New Zealand Banking Group Ltd, the applicants, Mr and Mrs Rayner, sought to challenge the costs orders made against them by the Full Court. The applicants, who had been in default under two mortgage securities with the bank, were pursuing a motion to vary the orders insofar as they related to costs. The applicants argued that the bank had recovered the costs incurred in the appeal and motion for judgment by debiting their accounts, thereby circumventing the taxation process.

The primary legal issue before the court was whether the costs order made by the Full Court overrode the contractual right to costs under the mortgage agreements. The applicants contended that the bank's actions in debiting their accounts to recover costs meant that the costs order had effectively been fulfilled. The court needed to determine whether the applicants were entitled to have the bank reimburse them for the costs that had been debited to their accounts.

The court found that the costs order made by the Full Court was not intended to be overridden by the contractual right to costs under the mortgage agreements. The court held that the costs order remained in effect and that the applicants were not entitled to have the bank reimburse them for the costs that had been debited to their accounts. The applicants' motion to vary the costs orders was dismissed, and the bank was not required to pay the applicants any sum in relation to the costs that had been debited to their accounts.

In conclusion, the court determined that the costs order made by the Full Court remained in effect and that the applicants were not entitled to reimbursement from the bank for the costs that had been debited to their accounts. The motion to vary the costs orders was dismissed, and the applicants were not granted any relief in relation to the costs that had been debited to their accounts.