Wei & Xia (No 2)

Case [2024] FedCFamC1A 138


FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA

(DIVISION 1) APPELLATE JURISDICTION

Wei & Xia (No 2) [2024] FedCFamC1A 138

Appeal from: Wei & Xia (No 5) [2023] FedCFamC1F 679
Appeal number: NAA 246 of 2023
File number: SYC 196 of 2017
Judgment of: ALDRIDGE, HOGAN AND KARI JJ
Date of judgment: 20 August 2024
Catchwords: FAMILY LAW – APPEAL – COSTS – Application for indemnity costs – Where the appellant was wholly unsuccessful – Where the cross-appeal was abandoned at the appeal hearing – Not all claimed costs justifiable – Appellant to pay the first respondent’s and second and third respondents’ costs in fixed sums.
Legislation:

Family Law Act 1975 (Cth) s 117

Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth) rr 3.19, 12.13, 13.53, Sch 3

Cases cited:

Beckham & Quarrington [2024] FedCFamC1A 136 Colgate-Palmolive Co v Cussons Pty Ltd (1993) 46 FCR 225; [1993] FCA 801

Conrad & Conrad (2020) 61 Fam LR 301; [2020] FamCAFC 255

E Pty Ltd & Zunino (No 2) [2020] FamCAFC 272

Kohan and Kohan (1993) FLC 92-340; [1992] FamCA 116

Wei & Xia [2024] FedCFamC1A 65

Yunghanns v Yunghanns (2000) FLC 93-029; [2000] FamCA 681

Number of paragraphs: 52
Date of last submission: 23 May 2024
Date of hearing: Determined in chambers on the papers
Place: Sydney
Solicitor for the Appellant: Broaden Legal
Solicitor for the First Respondent: Metro North Legal
Counsel for the Second Respondent: Mr Reynolds
Solicitor for the Second Respondent: MLH Lawyers
The Third Respondent: Represented by Mr B Xia (the Second Respondent)

ORDERS

NAA 246 of 2023
SYC 196 of 2017

FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA
DIVISION 1 APPELLATE JURISDICTION

BETWEEN:

MS WEI

Appellant

AND:

MR XIA

First Respondent

MR B XIA

Second Respondent

MS SIANG (DECEASED)

Third Respondent

ORDER MADE BY:

ALDRIDGE, HOGAN AND KARI JJ

DATE OF ORDER:

20 AUGUST 2024

THE COURT NOTES THE AGREEMENT OF THE PARTIES THAT:

A.In January 2024, the second respondent was appointed by the Supreme Court of New South Wales as the administrator of the late estate of the third respondent.

AND THE COURT ORDERS BY CONSENT THAT:

1.Pursuant to r 3.19(3) of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth), the second respondent, in his capacity as the administrator of the deceased estate of Ms Siang, be substituted as the third respondent.

2.Pursuant to r 3.19(2) of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth), in respect of costs, the application for costs in the Application in a Proceeding filed on behalf of the second and third respondents on 14 September 2023 that the evidence in support of the costs application and the second respondent’s written submissions in support of the same be taken to be repeated and relied upon by the third respondent mutatis mutandis in support of an application for costs by the third respondent.

AND THE COURT FURTHER ORDERS THAT:

3.If and when the estate of the late Ms…

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Wei & Xia (No 2) [2024] FedCFamC1A 138
Case
[2024] FedCFamC1A 138
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CaseChat Overview and Summary

In Wei & Xia (No 2), Ms Wei appealed against a decision of the Family Court, while Mr Xia, the administrator of the estate of the late Ms Siang, and Mr B Xia, the deceased's son, cross-appealed. The central issue was the allocation of costs related to the proceedings. The appeal court had to determine whether the appellant was entitled to indemnity costs and, if so, to what extent the respondents' claims for costs were justifiable.

The appeal court examined the submissions and evidence provided by the parties regarding the costs incurred. It noted that the appellant was unsuccessful in her appeal and that the cross-appeal had been abandoned. The court found that not all the costs claimed by the respondents were justifiable. Consequently, the court ruled that the appellant should pay fixed sums of the respondents' costs. The court also noted the agreement of the parties regarding the substitution of the administrator of the deceased estate as the third respondent and ordered that costs be deducted from the estate before any remaining funds were paid to the appellant.

The court's decision highlighted the importance of the principle that the unsuccessful party in litigation should bear the costs of the successful party. Given the appellant's lack of success and the abandonment of the cross-appeal, the court ordered that the appellant pay fixed sums of the first and third respondents' costs. The order also provided for the deduction of these costs from the estate before any remaining funds were paid to the appellant.

The court's orders were that the second respondent, in his capacity as the administrator of the deceased estate, be substituted as the third respondent. It further ordered that if and when the estate complied with the primary judge's order, it should first deduct $68,000 as the costs of the appeal payable by the appellant, then pay $16,000 as the first respondent's costs of the appeal, before paying the balance to the appellant.

Orders

Orders of the court

NAA 246 of 2023

SYC 196 of 2017

FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA

DIVISION 1 APPELLATE JURISDICTION

BETWEEN:

MS WEI

Appellant

AND:

MR XIA

First Respondent

MR B XIA

Second Respondent

MS SIANG (DECEASED)

Third Respondent

ORDER MADE BY:

ALDRIDGE, HOGAN AND KARI JJ

DATE OF ORDER:

20 AUGUST 2024

THE COURT NOTES THE AGREEMENT OF THE PARTIES THAT:

A. In January 2024, the second respondent was appointed by the Supreme Court of New South Wales as the administrator of the late estate of the third respondent.

AND THE COURT ORDERS BY CONSENT THAT:

1. Pursuant to r 3.19(3) of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth), the second respondent, in his capacity as the administrator of the deceased estate of Ms Siang, be substituted as the third respondent.

2. Pursuant to r 3.19(2) of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth), in respect of costs, the application for costs in the Application in a Proceeding filed on behalf of the second and third respondents on 14 September 2023 that the evidence in support of the costs application and the second respondent’s written submissions in support of the same be taken to be repeated and relied upon by the third respondent mutatis mutandis in support of an application for costs by the third respondent.

AND THE COURT FURTHER ORDERS THAT:

3. If and when the estate of the late Ms Siang complies with Order 8 made by the primary judge on 16 August 2023, it shall first deduct from the sum being paid and retain for itself $68,000 as the costs of the appeal payable by the appellant and, secondly, pay to the first respondent $16,000 as his costs of the appeal before paying the balance to the appellant.

Note: The form of the order is subject to the entry in the Court’s records.

Note: This copy of the Court’s Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 10.14(b) Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth)), or to record a variation to the order pursuant to r 10.13 Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth).

Part XIVB of the Family Law Act 1975 (Cth) makes it an offence, except in very limited circumstances, to publish an account of proceedings that identify persons, associated persons, or witnesses involved in family law 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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