Wende v Ferry

The respondents, Mr and Mrs Wende, engaged the appellants, Mr and Mrs Ferry, to act as their solicitors in proceedings in the Family Court. The Wendes signed a document entitled "Costs Agreement" which provided for certain fees and expenses and referred to the "billing arrangements" attached. The billing arrangements stated that the fees would be calculated on a time basis at a rate of $245 per hour. The Wendes subsequently became dissatisfied with the Ferrys' work and terminated the engagement, arguing that the document signed did not constitute an enforceable costs agreement. The Ferrys commenced proceedings in the Federal Circuit Court seeking an order for payment of the amount claimed in the bill of costs. The Wendes argued that the "Costs Agreement" was not a binding contract and that the "billing arrangements" did not constitute a binding agreement as to the method of calculating costs. The court was required to determine whether the document signed constituted a binding costs agreement and, if so, whether the "billing arrangements" were part of that agreement and whether they were enforceable. The court held that the "Costs Agreement" did constitute a binding costs agreement and that the "billing arrangements" were incorporated into that agreement as a contractual term. The court found that the term was not unreasonable and thus enforceable. The court rejected the argument that the term was unconscionable or that it had been entered into under duress. The court ordered the Wendes to pay the Ferrys the amount claimed in the bill of costs, together with interest. The court held that the costs agreement was binding and that the "billing arrangements" were part of that agreement. The court found that the term was not unreasonable and thus enforceable. The court rejected the argument that the term was unconscionable or that it had been entered into under duress. The court ordered the Wendes to pay the Ferrys the amount claimed in the bill of costs, together with interest.