ZUBCIC & ZUBCIC

In *Zubcic & Zubcic*, Rees J of the Family Court of Australia considered applications for costs made by the applicant wife and the respondent husband, as well as the costs sought by a second respondent. The dispute concerned the allocation of costs following proceedings where the conduct of both the applicant and the respondent husband had, according to the court, exacerbated the overall costs incurred.

The primary legal issues before the court were whether either party should be ordered to pay the other's costs, and whether the applicant should be ordered to pay the costs of the second respondent. The court was required to determine the appropriate cost orders in light of the parties' conduct during the proceedings and the outcome of the substantive claims.

Rees J reasoned that while both the applicant and the respondent husband had contributed to the increased costs through their conduct, neither was to bear the other's costs. However, the court found that the applicant was wholly unsuccessful in her opposition to the second respondent's claim, which was supported by compelling evidence. Consequently, the court ordered the applicant to pay the second respondent's costs on an indemnity basis. The final orders reflected this determination, dismissing the applications for costs between the wife and husband, and ordering the wife to pay the second respondent's costs in the sum of $83,936.25, with provision for payment from funds to be paid to the wife.