Terzi & Terzi (No 4)

The case of *Terzi & Terzi (No 4)* concerned an application by the respondent wife for an order that the applicant husband pay her costs of the proceedings. The dispute arose in the context of family law proceedings, specifically concerning property settlement and spousal maintenance. The application for costs was made to the Federal Circuit and Family Court of Australia.

The primary legal issue before the court was whether the respondent wife should be awarded costs against the applicant husband, and if so, on what basis. This involved considering the general rule that costs follow the event in litigation, but also the specific considerations applicable in family law proceedings, such as the parties' financial circumstances and the conduct of the parties during the litigation. The court had to determine if there were exceptional circumstances to depart from the usual approach to costs.

Foster J considered the conduct of both parties throughout the proceedings, including their willingness to engage in settlement negotiations and their adherence to court orders. The court applied the principles outlined in the *Family Law Act 1975* (Cth) and relevant case law concerning costs in family law matters. The judge noted that while the general rule is that each party bears their own costs, a departure from this rule may be warranted where a party has engaged in vexatious or unreasonable conduct, or where there has been a significant disparity in the parties' financial positions that makes the general rule unjust.

Ultimately, Foster J ordered that the applicant husband pay the respondent wife's costs of the proceedings, to be assessed on an indemnity basis. This decision reflected the court's finding that the husband's conduct had unnecessarily prolonged the litigation and had caused significant disadvantage to the wife.