Stopford Malloy and Malloy & Ors

In the matter of *Stopford Malloy and Malloy & Ors*, Tree J of the Family Court of Australia considered applications for costs made by the wife against the first respondent husband. The dispute involved multiple applications concerning receivers' costs, indemnity claims, enforcement of spousal maintenance arrears, and litigation funding.

The court was required to determine whether to grant the wife’s applications for party and party costs in relation to several specific applications, including the husband's unsuccessful claim for indemnity from the wife regarding receivers' costs, the wife's successful application for enforcement of spousal maintenance arrears, and her successful application for litigation funding. The court also considered an application by the wife for non-party costs against subpoenaed companies and the husband's application for indemnity.

Tree J reasoned that the husband's poor financial circumstances did not preclude an order for costs where justified, particularly given his continued extravagant lifestyle. The husband's initial application for indemnity was wholly unsuccessful. Proceedings related to spousal maintenance arrears were necessitated by the husband's non-compliance with previous court orders. While subpoenaed companies largely resisted document production, the court found insufficient evidence that they were actively involved in the conduct of the litigation to warrant a non-party costs order against them. The wife's application for non-party costs against these companies was therefore dismissed, with costs certificates ordered.

Consequently, the court ordered the first respondent husband to pay the wife’s assessed party and party costs in relation to the receivers' application, the husband's amended response seeking indemnity, the wife's submissions, the wife's application for enforcement of spousal maintenance arrears, and the wife's application for litigation funding. These proceedings were certified as fit for Senior and Junior Counsel. The wife's application filed on 13 January 2020 was otherwise dismissed.