Richard Zhao Lawyers Limited v Family Court at Auckland

Richard Zhao Lawyers Limited and Richard Zhao, trading as Richard Zhao Lawyers, brought an appeal against the Family Court at Auckland and Jie Ping Chen. The first ground of appeal was the quantum of a costs order made by Asher J in the appellants' favour in the High Court at Auckland. The second ground of appeal was three decisions of Associate Judge Bell: dismissing a bankruptcy application against Ms Chen, refusing to recall his judgment in light of fresh evidence, and granting costs. The Court of Appeal found that the appeals were without merit and dismissed them. The appellants were ordered to pay Ms Chen’s costs for a standard appeal on a band A basis and usual disbursements.

The Court of Appeal found that Justice Asher’s costs award of $4,000 was open to him and appropriate. It found that Justice Asher was entitled to look at the background to the decisions of the Family Court when deciding costs, and that his modest costs award was appropriate given the success of the appellants and the merit of Ms Chen’s claim. The Court of Appeal found that the decisions of Associate Judge Bell were also appropriate. It found that the Associate Judge was entitled to regard the funds held by the appellants as being available to set off Ms Chen’s indebtedness, and that his award of costs was within his discretion. The Court of Appeal concluded that the appeals were dismissed and that the appellants must pay Ms Chen’s costs.