Stevenson and Manuel & Anor

In the matter of *Stevenson and Manuel & Anor*, Dawe J of the Federal Circuit Court of Australia considered an application by the husband to bifurcate proceedings concerning an application to set aside final property orders pursuant to s 79A of the *Family Law Act 1975* (Cth). The wife opposed this bifurcation, and the husband's current partner was joined to the proceedings. The court also addressed issues of privilege and security for costs.

The primary legal issues before the court were whether the s 79A proceedings should be bifurcated, and if so, to what extent. Additionally, the court was required to determine whether the wife had waived privilege over documents from her former solicitor's file, and whether security for costs should be ordered in favour of the husband and the second respondent.

Dawe J ordered that the s 79A proceedings be bifurcated, but limited this bifurcation to the threshold question of whether a miscarriage of justice had occurred. The court found that privilege had not been waived by the wife, despite the husband having viewed the documents in question, as the wife had not consented to their production and had asserted privilege. Regarding security for costs, the court ordered the wife to provide limited security for the husband and the second respondent, noting the second respondent's limited role in the s 79A proceedings and the potential for proceedings to be stifled.

The proceedings were adjourned for directions and listing of the threshold question concerning the miscarriage of justice. Further s 79A proceedings were adjourned pending the outcome of this threshold determination. Compliance with a previous order was stayed, and the wife was restrained from reducing the funds in a specific managed fund below $60,000.00 as security for costs. An order restraining the second respondent from dealing with her interest in a property was varied to allow her to mortgage or encumber it for a loan not exceeding $100,000.00. The husband's application filed on 24 April 2014 was dismissed.