SCOTT & SCOTT

Case

[2020] FamCA 414

2 June 2020


Details
AGLC Case Decision Date
SCOTT & SCOTT [2020] FamCA 414 [2020] FamCA 414 2 June 2020

CaseChat Overview and Summary

The case of *Scott & Scott* involved applications by former court-appointed receivers for the quantification and payment of their fees and disbursements, and an application by the husband for the wife to pay his costs of property proceedings. The dispute also concerned the enforcement of a binding financial agreement, with the husband proposing the appointment of a receiver to facilitate its implementation due to the parties' inability to cooperate.

The court was required to determine the appropriate quantum of the former receivers' fees and how responsibility for their payment should be allocated between the parties. Additionally, the court had to consider the relevant factors under section 117(2A) of the *Family Law Act 1975* (Cth) in determining whether to order the wife to pay the husband's costs, particularly in light of her lack of success in her application under Part VIIIA of the Act and her financial circumstances. Finally, the court needed to address the enforcement of the binding financial agreement, including the appointment of a new receiver and the allocation of their remuneration.

In relation to the former receivers, the court found them entitled to claim remuneration, expenses, and costs. The dispute was confined to the quantum of these fees and the responsibility for payment. The court reasoned that as the receivers were appointed for the benefit of both parties, they should be jointly and severally liable to the former receivers for their fees. The parties were ordered to indemnify each other to the extent of one-half of the total sum payable to the former receivers, and this sum was charged against their real and personal property. Regarding costs, the court considered the wife's complete lack of success in her Part VIIIA application a compelling factor, and her financial circumstances did not preclude a costs order. Consequently, the wife was ordered to pay the husband's party/party costs for a confined period. To enforce the binding financial agreement, the court ordered the parties to nominate independent persons to act as a new receiver, with the chosen receiver to be appointed by ballot and their remuneration to be borne equally by the parties.

The court ordered the parties to be jointly and severally liable to the former receivers for a total sum of $358,397.60, with each party to indemnify the other for one-half of this amount, and this sum was charged against their property. The wife was ordered to pay the husband's party/party costs for a specific period related to the Part VIIIA proceedings. A new receiver was to be appointed by ballot from nominations made by each party, and the parties were to bear the new receiver's remuneration and disbursements in equal shares, with this also charged against their property. The husband was also ordered to comply with a previous order regarding the sale of a property and the application of proceeds.
Details

Areas of Law

  • Family Law

  • Equity & Trusts

Legal Concepts

  • Costs

  • Remedies

  • Injunction

  • Fiduciary Duty

  • Statutory Construction

  • Jurisdiction

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Cases Citing This Decision

2

Scott & Scott (No. 3) [2021] FamCA 602
Scott & Scott (No. 2) [2021] FamCA 50
Cases Cited

7

Statutory Material Cited

4

SCOTT & SCOTT [2019] FamCAFC 9
Malloy & Stopford Malloy [2019] FamCA 986