Wade & McPherson

Case [2014] FCCA 1321


FEDERAL CIRCUIT COURT OF AUSTRALIA

WADE & MCPHERSON [2014] FCCA 1321

Catchwords:
FAMILY LAW – Costs – Application for costs – where Applicant wholly unsuccessful in proceeding – whether costs should be awarded against the Applicant’s solicitor personally – whether costs should be payable on an indemnity basis – unarguable case – failure to refer to appeal decision relevant to the case – potential to mislead the Court – whether unsatisfactory professional conduct.

PRACTICE AND PROCEDURE – Family Law Rules 2004 rr.1.14, 1.21 and 19.08 do not apply in the Federal Circuit Court – whether Application for costs out of time –whether extension of time should be granted – Court may extend time fixed even after the time has passed – application filed only 3 days late – no practical injustice.

Legislation:

Family Law Act 1975 (Cth), ss.69ZK, 94A, 117

Children and Young Persons (Care and Protection) Act 1998 (NSW), s.79
Civil Procedure Act 2005 (NSW), s.99
Legal Aid Commission Act 1979 (NSW), s.41
Legal Profession Act 2004 (NSW), s.496
Family Law Rules 2004 rr. 1.14, 1.21, 19.08
Federal Circuit Court Rules 2001, rr 3.05, 21.02, 21.07

Cases cited:
Colgate Palmolive Co v Cussons Pty Ltd [1993] FCA 536; (1993) 46 FCR 225; 118 ALR 248
Fay & Turner [2008] FMCAfam 1508
Re Felicity [2012] NSWSC 494
Re Felicity (No.2) [2012] NSWSC 1561
Re Felicity [2013] NSWCA 21

Re J (1990) 14 Fam LR 584

In the Marriage of Kohan (1992) 16 Fam LR 245; (1993) FLC 92-340
Lemoto v Able Technical Pty Ltd [2005] NSWCA 153; (2005) 63 NSWLR 300

Levick v Deputy Commissioner of Taxation [2000] FCA 674; (2000) 102 FCR 155

In the Marriage of Mullane (1980) 5 Fam LR 801; FLC 90-826
Prantage & Prantage [2013] FamCAFC 105; (2013) 49 Fam LR 197
Steindl Nominees Pty Ltd v Laghaifar [2003] QCA 157; [2003] 2 Qd R 683

Wade & McPherson [2013] FCCA 1583

Applicant: MS WADE
Respondent: MR MCPHERSON
File Number: SYC 1930 of 2013
Judgment of: Judge Scarlett
Hearing date: Heard in chambers
Date of Last Submission: 28 May 2014
Delivered at: Sydney
Delivered on: 25 June 2014

REPRESENTATION

Solicitor for the Applicant: Mr Potkonyak
Solicitors for the Applicant: Capellia Legal
Solicitor for the Respondent: Ms Little
Solicitors for the Respondent: Little & Associates

ORDERS

  1. The time for the Respondent to file an Application for costs is extended to 11 November 2013.

  2. The Applicant’s solicitor, GEORGE POTKONYAK, is to pay the Respondent’s costs of the proceeding an indemnity basis, fixed in the sum of $4604.00.

  3. I allow three (3) months to pay.

  4. Any application for an order for costs of the Application in a Case filed on 11 November 2013 is to be filed and served within twenty-eight (28) days.

  5. The Applicant’s solicitor GEORGE POTKONYAK is to make a written submission to the Court within twenty-eight (28) days to show cause why a complaint should not be made to the Office of the Legal Services Commissioner…

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AGLC
Wade & McPherson [2014] FCCA 1321
Case
[2014] FCCA 1321
Decision Date

CaseChat Overview and Summary

In the Federal Circuit Court, Judge Scarlett considered an application for costs. The applicant was wholly unsuccessful in the proceeding, leading to a dispute over whether costs should be awarded against the applicant's solicitor personally and whether those costs should be payable on an indemnity basis. The respondent also sought an extension of time to file their application for costs.

The court was required to determine whether to grant an extension of time for the respondent to file their costs application, despite it being filed only three days late. Furthermore, the court had to consider whether to order the applicant's solicitor to pay the respondent's costs personally, on an indemnity basis, given the circumstances of the proceeding. Finally, the court was asked to consider whether the solicitor's conduct warranted a complaint to the Office of the Legal Services Commissioner for unsatisfactory professional conduct.

Judge Scarlett reasoned that the Federal Circuit Court had the power to extend time for filing applications, even after the time had expired, and that granting the extension would cause no practical injustice as the application was only marginally out of time. The court found that the applicant's case was unarguable and that the solicitor's conduct, including a failure to refer to a relevant appeal decision and a potential to mislead the Court, justified ordering the solicitor to pay the respondent's costs on an indemnity basis. The court also determined that the solicitor's conduct constituted unsatisfactory professional conduct.

Consequently, the court extended the time for the respondent to file their application for costs. The applicant's solicitor, George Potkonyak, was ordered to pay the respondent's costs on an indemnity basis, fixed at $4604.00, with three months to pay. The solicitor was also ordered to make written submissions to the court within twenty-eight days to show cause why a complaint should not be made to the Office of the Legal Services Commissioner regarding his conduct.

Orders

Orders of the court

1.

The time for the Respondent to file an Application for costs is extended to 11 November 2013.

2.

The Applicant’s solicitor, GEORGE POTKONYAK, is to pay the Respondent’s costs of the proceeding an indemnity basis, fixed in the sum of $4604.00.

3.

I allow three (3) months to pay.

4.

Any application for an order for costs of the Application in a Case filed on 11 November 2013 is to be filed and served within twenty-eight (28) days.

5.

The Applicant’s solicitor GEORGE POTKONYAK is to make a written submission to the Court within twenty-eight (28) days to show cause why a complaint should not be made to the Office of the Legal Services Commissioner in respect of unsatisfactory professional conduct in his conduct of the proceedings.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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