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Emmett & Emmett (No. 2) [2011] FamCAFC 229; (1 December 2011)
Last Updated: 8 December 2011
FAMILY COURT OF AUSTRALIA
FAMILY LAW – APPEAL – Application for a stay of the orders made
by the Full Court requiring that the wife pay security
for costs – Where
the application is opposed by the husband –Where the wife explained that
she has tried to obtain legal
advice and instruct counsel to assist in the five
appeals without success – Where the wife explained that she has
unsuccessfully
tried to obtain the $27,000 required to satisfy the security for
costs order – Where the wife is appealing the decision of
Legal Aid not to
grant her assistance – Where on the wife’s own evidence there is no
explanation as to how she could
satisfy the order and so there is no utility in
extending the time – Application dismissed
FAMILY LAW – APPEAL – Application to “re-open” an
appeal concerning incidental schooling expenses –
Where the wife seeks at
adduce further evidence which indicates that the husband was in receipt of a
State Government Education Text
Book Allowance – Where the wife submitted
the grant should have been paid to her as she has met the costs of the
children’s
school books and incidentals each year – Where the
application is opposed by the husband – Where the husband submitted
that
the grant was paid directly to the school – Where if the wife had paid
security for costs it may have been open to her
to apply to adduce further
evidence on appeal – Where the application is trivial in nature and seems
to be fully explained
by the husband – Application dismissed
FAMILY LAW – COSTS – No order as to costs
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NA
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21
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2010
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NA
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29
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of
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2010
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NA
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81
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of
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2010
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NA
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40
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of
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2011
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NA
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41
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of
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2011
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May, Ainslie-Wallace & Young JJ
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LOWER COURT JURISDICTION:
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Family Court of Australia
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LOWER COURT JUDGMENT DATE:
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REPRESENTATION
SOLICITOR
FOR THE APPELLANT:
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SOLICITOR FOR THE
RESPONDENT:
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Mr Bowrey Wilson Ryan & Grose
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ORDERS
(1) The wife’s applications filed 27 October 2011
be dismissed
(2) The wife’s application filed 2 December 2010 for the transcript be
dismissed.
(3) The appeals NA 21 of 2010, NA 29 of 2010, NA 81 of 2010, NA 40 of 2011 and
NA 41 of 2011 are dismissed.
(4) No order as to costs.
IT IS NOTED that publication of this judgment under the
pseudonym Emmett & Emmett (No 2) is approved pursuant to s
121(9)(g) of the Family Law Act 1975 (Cth).
THE FULL COURT OF THE FAMILY COURT OF AUSTRALIA AT TOWNSVILLE
|
Appeal Number: NA 21 of 2010; NA 29 of 2010;
NA 81 of 2010; NA 40 of 2011; NA 41 of
2011
File Number: TVF 2766 of 2000; TVC 710 of
2010
Applicant
And
Respondent
REASONS FOR JUDGMENT
INTRODUCTION
- These
proceedings concern the wife’s two applications filed 27 October 2011. The
first is an application to stay the orders
made by the Full Court on
29 July 2011. The second is an application to “re-open” NA 40 of
2011 and NA 41
of 2011 concerning the incidental expenses rendered in relation
to the children from the G School.
- The
husband opposes both applications. In a letter addressed to the wife the husband
advised that he “does not intend to file
and serve a further affidavit in
this matter” but rather that he intends to rely on his affidavit filed
18 August 2010.
- Each
party filed written submissions and oral submissions were also heard from each
party.
HISTORY
- In
order to understand the context in which the wife brings these applications it
is necessary to have an appreciation of the history
of the proceedings.
- A
chronology of the proceedings was provided in the reasons for judgment of the
Full Court on 29 July 2011. We will reproduce that
summary here:
- The
parties were married and commenced living together in June 1986. They separated
on 5 November 2000 and were divorced in February
2003.
- They
have three children, [J] born in August 1990, [R] born in November 1992 and [A]
born June 1994.
- On
11 September 2001 final consent orders for parenting and alteration of property
interests were made. The long history of litigation
largely instituted by the
wife in this court began shortly thereafter and continues with these
appeals.
- The
children remained living with their mother in the former matrimonial home after
separation. From March 2001 to April 2007 the
children lived with their father.
In April 2007 they returned to live with their mother after she successfully
appealed orders including
those in relation to children’s orders. The Full
Court on 22 November 2006 ordered a re-hearing. Subsequently orders were
made
providing that the children live with the mother.
- The
wife filed an application on 2 January 2002 to “re-open” the
property settlement pursuant to s 79A of the Family Law Act 1975
(Cth) (“the Act”). This application was dismissed on
11 February 2002 with costs to be paid by the wife.
- The
wife filed a further application on 21 January 2004, amended on 26 July 2004
seeking that the property orders made by consent
in 2001 be set aside. On 11
October 2004 Monteith J summarily dismissed the wife’s application. The
wife appealed the decision.
- The
husband then filed an application pursuant to s 118 of the Act on
23 November 2004 seeking that the wife be restrained from instituting
proceedings under the Act with respect to the
children and/or the matrimonial
property without leave of the court. The husband’s costs of and incidental
to the proceedings
and his application were also sought.
- On
14 February 2005 Monteith J restrained the wife from commencing parenting or
property proceedings without leave and ordered that
the wife pay the
husband’s costs. The wife appealed the decision.
- The
wife’s appeal of the 11 October 2004 and the 14 February 2005 orders were
heard by the Full Court on 1 and 2 November 2005.
Orders were made for the
filing of further written submissions. On 22 November 2006 judgment was
delivered. The appeals were allowed
and the matter remitted for re-hearing.
- On
12 and 13 June 2007 the remitted hearing was listed before Carter J. The matter
was not ready to proceed. The husband filed an
application seeking to summarily
dismiss the wife’s s 79A application. His application was dismissed.
- On
30 July 2008 the wife filed an amended application for final property orders.
The application was heard by Watts J over eight days
in March and April 2009.
Judgment was delivered on 21 January 2010. The wife’s
application was dismissed.
The husband was ordered to pay $1,230.00 per month by
way of periodic child support for [R] and [A] from 16 March 2009 until
24 November
2010 and $1,000.00 per month thereafter until [A] completed his
secondary education. The husband was also ordered to pay school fees
and
incidental charges relating to the children’s schooling. The
husband’s application pursuant to s 118 of the Act was dismissed.
- The
wife filed a notice of appeal on 18 February 2010 appealing the final orders
made by Watts J (NA 21 of 2010). ...
- On
2 March 2010 the wife filed an application in an appeal seeking leave to appeal
out of time interlocutory orders made by Watts
J on 21 January 2010 (NA 29
of 2010). Those orders provided:
- Leave
be granted to the wife to tender a letter written to the Manager [T Super] dated
17 March 2009 and a letter received by the
wife from [T Super] dated
14 April 2009 and those documents will be marked Exhibit QQQ.
- Otherwise
the wife’s application filed on 14 July 2009 is
dismissed.
His Honour said in paragraph one of the
reasons for judgment:
This is an application filed by the wife on 14 July 2009 to adduce further
evidence in relation to a hearing that was finalised before
me on 16 April 2009
where judgment had been reserved. That hearing related primarily to an
application for final orders filed by
the wife on 30 July 2008, in which she
sought pursuant to s 79A Family Law Act 1975 (Cth), that consent property
orders dated 11 September 2001 be set aside and new orders be made in their
place.
- As
can be seen these 21 January 2010 interlocutory orders were made prior to his
Honour delivering the substantive orders and were
related to that trial.
- On
14 May 2010 May J granted the wife an extension of time within which to file her
notice of appeal. The wife subsequently filed
her notice of appeal in NA 29 of
2010 on the same day.
- On
17 June 2010 Watts J ordered the wife to pay the husband’s costs arising
out of the wife’s amended application for
final property orders filed
30 July 2008 and the husband’s application for costs. His Honour
fixed costs in the sum of $7,800
to be paid by the wife in weekly instalments of
$50.
- On
15 July 2010 the wife filed a notice of appeal against the orders of Watts J of
17 June 2010 (NA 81 of 2010).
- On
24 August 2010 the wife filed an application in an appeal seeking an extension
of time to file the appeal books in relation to
NA 21 of 2010.
- On
30 September 2010 the husband filed an application in an appeal in respect of NA
21 of 2010 and NA 29 of 2010, seeking security
for costs in the sum of $27,000,
and that until such time as the money is deposited in the husband’s
solicitors trust account
that the wife be restrained from proceeding with her
appeals. Costs of and incidental to the husband’s applications are also
sought.
- On
17 November 2010 Watts J made orders dismissing the wife’s application
relating to the children’s expenses at school.
The application which was
filed on 7 July 2010 asked:
- I
seek that [the husband] be ordered to pay the amount of $845.96 as a direct
credit to my Bank of Queensland account immediately.
- I
seek that the wording of Paragraph 3 of the Order of Justice Watts dated
21st January 2010 be changed to incorporate any
incidentals required by the [G] School.
- I
seek that an order be made that the school book list is forwarded direct to [the
husband] and arranged for collection by [the husband]
by the first week of
January each year.
- I
seek that Paragraph 3 of the Order of Justice Watts dated
21st January 2010 regarding the payment of incidentals
requested by the [G] School be backdated to 2008 instead of only backdated to
2009.
The reason for this order is that I have receipts for approximately
$1200.00 from incidentals purchased in the 2008 year.
- Judgment
in respect of the husband’s application for costs was reserved.
- The
wife filed an application in an appeal on 12 May 2011 seeking an extension of
time within which to appeal the orders of Watts
J made 17 November 2010 (NA
40 of 2011).
- On
same day the wife also filed an application in an appeal seeking an extension of
time within which to appeal against the orders
of Watts J made 22 December
2010 (NA 41 of 2011).
- On
2 December 2010 the wife filed an application in an appeal in NA 21 of 2010, NA
29 of 2010 and NA 81 of 2010 seeking an order that
the court purchase the
transcripts of the proceedings in each of those appeals.
- The
wife’s applications for leave to appeal out of time in relation to two
appeals, NA 40 of 2011 and NA 41 of 2011; and the
wife’s application for
the court to purchase the transcript of proceedings relating to three appeals,
NA 21 of 2010, NA 29
of 2010 and NA 81 of 2010 were heard by the
Full Court on 31 May 2011.
- On
same day the husband’s application for security for costs in respect of
three appeals, NA 21 of 2010, NA 29 of 2010 and NA
81 of 2010 was also heard. At
the hearing of the application the husband also asked that NA 40 of 2011 and NA
41 of 2011 be subject
to the same security for costs application.
- The
Full Court ordered on 29 July 2011:
(1) That the wife have leave to
file a notice of appeal out of time against the orders of Watts J made 17
November 2010, in appeal
NA 40 of 2011, and the time within which the appeal may
be filed be extended to 5 August 2011.
(2) That the wife have leave to file a notice of appeal out of time against
the orders of Watts J made 22 December 2010, in appeal
NA 41 of 2011, and the
time within which the appeal may be filed be extended to 5 August 2011.
(3) That the appeals NA 21 of 2010, NA 29 of 2010, NA 81 of 2010,
NA 40 of 2011 and NA 41 of 2011 be dismissed unless
on or before
31 October 2011 the wife pays the sum of $27,000.00 by cash or bank cheque by
way of security for costs
of the appeals to the husband’s solicitors trust
account.
(4) Upon such sum being paid to the solicitors, the moneys be held in a
separate account to be dispersed upon further order of the
court.
(5) That each party pay their own costs of the application for security for
costs.
(6) Further, it is directed that upon payment of the security for costs to
the husband’s solicitor, the appeals NA 21 of 2010,
NA 29 of 2010, NA 81
of 2010, NA 40 of 2011 and NA 41 of 2011 be listed for hearing and be heard
together.
IT IS NOTED
(7) That the reasons for judgment in relation to the wife’s application
for the provision of the transcript be reserved pending
the payment by the wife
of security for costs.
- On
1 November 2011 the husband’s solicitors wrote to the Appeals Registrar
advising that the wife failed to deposit the required
$27,000 sum or any other
amount to their trust account pursuant to the order of the Full Court.
- On
27 October 2011, four days before the security for costs sum was due, the wife
filed the two applications to which we have referred,
being, the application for
a stay of the orders and an application to re-open the appeals concerning the
incidental expenses from
the G School.
- Each
of the wife’s applications will be considered in
turn.
APPLICATION FOR STAY
- In
the concluding paragraphs of her affidavit the wife asked that the
“[o]rders of the Full Court be stayed until the decision
of Legal Aid has
been appealed, until advice or representation is available to make an
application to the High Court or until the
Respondent make available funds to
pay the Security for Costs and fund legal representation for the [wife]”.
In the alternative,
the wife asked that the husband’s security for costs
application be reopened to adduce further evidence.
- As
the wife cannot appeal the security for costs order to this court, we have
decided to treat the wife’s application for a
stay of the orders as an
application for an extension of time to pay the security for costs.
- In
dealing with the wife’s application it is useful to recall our reasons
with regard to the husband’s security for costs
application. For
convenience we repeat part of the reasons:
- A
decision to order security for costs and the quantum ordered to be paid is an
entirely discretionary matter, as are all decisions
in relation to costs.
- Section
117(1) of the Act is relevant in considering an application for security for
costs. Namely, subject to s 117(2) and the considerations prescribed in s
117(2A) each party should bear their own costs.
- Part
19.3 of the Family Law Rules 2004 (Cth) (“the Rules”) concern
security for costs. Rule 19.05(2)
provides:
Application for security for costs
...
(2) In deciding whether to make an order, the court may
consider any of the following matters:
(a) the applicant’s financial means;
(b) the prospects of success or merits of the application;
(c) the genuineness of the application;
(d) whether the applicant’s lack of financial
means was caused by the respondent’s
conduct;
(e) whether an order for security for costs would be oppressive
or would stifle the case;
(f) whether the case involves a matter of
public importance;
(g) whether a party has an order, in the same or another
case (including a case in another court), against the other party for
costs that
remains unpaid;
(h) whether the applicant ordinarily resides
outside Australia;
(i) the likely costs of the case;
(j) whether the applicant is a corporation;
(k) whether a party is receiving legal aid.
...
- In
a not dissimilar matter, in relation to the factual background, Luadaka &
Luadaka [1998] FamCA 1520; (1998) FLC 92-830, the Full Court (Ellis, Finn & O’Ryan
JJ) at 85,507 said:
- In
our opinion, when dealing with an application for security for costs the general
rule provided for in s 117(1) applies, namely that subject to s 117(2) each
party to proceedings shall bear his or her own costs. However, if the court is
satisfied that there are circumstances that would
justify an order then the
court may, subject to s 117(2A), make such order for security for costs as the
court considers just. It is not necessary to establish that there are special
circumstances.
However, it is necessary to establish that there are justifying
circumstances. The decision to order security for costs is discretionary,
both
as to whether to order security, and as to the amount to be secured.
- The
purpose of an order for security is to secure justice between the parties by
ensuring that an unsuccessful party does not occasion
injustice to the other. In
considering whether or not to make an order, apart from those referred to in
s.117(2A), matters which may be relevant include the following:
62.1 It may be relevant to take into account the means of
an applicant to satisfy an order for costs if he or she is unsuccessful.
Ordinarily the means of the applicant is not alone sufficient to justify an
order for costs because of the rule that poverty should
be no bar to justice.
This is reinforced by s.117(1). However, the financial circumstances of the
applicant do not prevent an order being made if there are other grounds which
justify
an order. Financial weakness may be relevant, for example, if the
applicant is a company. In relation to the means of the respondent,
who is the
applicant for security, it was held by Goldstein J in Alexander and
Alexander (supra) and Gee J in B and B (supra) that the question is
whether or not the respondent is able to pay his or her costs. Section
117(2A)(a) requires consideration of the financial circumstances of both
parties. However, we do not accept that it will only be in cases where
the
applicant for security does not have the means to meet his or her costs that an
order would be made. In appropriate circumstances
an order may be made even if
the applicant for security has the means to pay his or her costs.
62.2 The prospects of success is a relevant matter to take into
consideration: Parkinson & Co Ltd v Triplan Pty Ltd (supra). However,
ordinarily the court will not undertake a detailed assessment of the likelihood
of the applicant’s success
unless it can be demonstrated that there is a
high probability of success or failure: Porzelack KG v Porzelack (UK)
Ltd [1987] 1 WLR 420; Appleglen Pty
Ltd v Mainzeal Corporation Pty Ltd [1988] FCA 15; (1988) 79 ALR 634;
Equity Access Ltd v Westpac Banking
Corporation [1989] FCA 361; (1989) ATPR 40-972. This is because of the lack of
material at the time the application is dealt with. However, such an assessment
may be possible in
circumstances where, as in this case, affidavits have been
filed in which the case sought to be made out is set out.
62.3 It is a relevant consideration whether
the applicant’s claim is made bona fide, whether it is genuine and not
trivial,
vexatious or a sham: Parkinson & Co Ltd v Triplan Pty Ltd
(supra); Lynnebry Pty Ltd v Farquhar Enterprises Pty Ltd
(1977) 3 ACLR 133; J & M O'Brien
Enterprises Pty Ltd v Shell Company of Australia Ltd
[1983] FCA 96; (1983) 7 ACLR 790.
62.4 It may be relevant to consider whether or not an order for costs would
be oppressive or stifle the litigation. In Mantaray Pty Ltd v
Brookfield Breeding Co Pty Ltd (1990) 8 ACLC 304 Byrne J said at 306:
“A factor in deciding whether security
should be required is that the order may well mean that the action cannot
proceed. That
prospect does not require refusal of the application but it is
often a significant matter.”
See also Rosenfield Nominees Pty Ltd v Bain & Co (1988) 14
ACLR 467 and Sydmar Pty Ltd v
Statewise Developments Pty Ltd (1987) 5 ACLC 480 .
62.5 It may be relevant to consider whether
or not the litigation may involve a matter of public importance: Equity
Access Ltd v Westpac Banking Corporation (supra); Jodast Pty Ltd v
A & J Blattner Pty Ltd (1991) 104
ALR 248. In Quick on Costs at [4.9440] it is said that this will militate
against the making of an order.
62.6 It may be relevant to consider whether or not there has been delay in
bringing the application. An application may be refused
if there is delay in
making the application and prejudice is caused to the respondent to the
application: Buckley v Bennell Design & Constructions Pty Ltd
(1974) 1 ACLR 301 and Loreva Pty Ltd v
Cefa Associated Agencies Pty Ltd (1982) 7 ACLR 164.
62.7 Other relevant matters may include any
difficulties of enforcing an order for costs and the amount of costs to be
incurred.
- In
Luadaka the Full Court was dealing with an appeal by the wife from a
single judge decision ordering security for costs of her s 79A proceedings.
The
wife said she had no money, the trial judge found her prospects of success were
limited to a possible question of how the superannuation
had been considered in
the first instance. The Full Court dismissed the appeal from the order that the
wife pay security.
- A
particular feature of this case is the wife’s poor financial
circumstances. It is contended by her that she would be unable
to pay any amount
by way of security.
- Jones
and Jones [2001] FamCA 460; (2001) FLC 93-080 the Full Court (Ellis, Kay & Mullane JJ)
distinguished the principles to be applied when determining an application for
security
for costs at first instance from those to be applied on appeal. It was
said at 88,377:
- It
has long been recognised that, as a general rule and in the exercise of an
unfettered discretion, mere impecuniosity of a litigant
who is a natural person,
will not of itself be a basis for ordering that person to provide security.
There is, however, an exception
to that general rule, namely in the case of
appeals. See Cowell v Taylor (1885) 31 Ch D 34 at 38,
J & M O’Brien Enterprises Pty
Ltd v Shell Co of Australia Ltd (No 2) [1983] FCA 96; (1983) 70 FLR 261 at 264,
Ciappina v Ciappina [1983] FCA 95; (1983) 70 FLR 287 at
290 and Paton v Campbell Capital Ltd
(unreported, Federal Court of Australia, 1 July 1993).
- The
fact that the wife would be unable to pay the costs awarded against her, if her
appeal was dismissed, is, in our view, a significant
factor to take into account
in considering whether to exercise the discretion to order security in favour of
the husband, but it
is not the only or deciding factor.
- If
an appeal appears to have little merit, a court may be more disposed to make an
order for security for costs. Whilst we have not
had the benefit of submissions
on behalf of the wife, the appeal does not appear to raise matters of
principle.
- Jones
was an application to the Full Court that the wife pay $5000 by way of
security. There was a long history of litigation. The subject
of the appeal was
spouse maintenance and costs orders. At the time of the hearing the wife was
indebted to the husband for $22,695.87
by way of taxed costs which the wife
claimed she was unable to pay. The husband said he had no assets, only debts
including $82,244.45
to his solicitors. The wife said she had no assets and was
largely dependent on the pension. It can be seen that the circumstances
of the
matter now before us is not unusual.
- The
court has on a number of occasions made similar orders. In Ansilda &
Hartford [2009] FamCAFC 128 the Full Court (May, O’Ryan &
Stevenson JJ) ordered the wife pay the sum of $15,000 as security for costs of
her appeal
and if not then the appeal be dismissed. The wife had filed an appeal
against final parenting orders. After dealing in considerable
detail with the
reasons for judgment of the trial judge and the affidavits before the Full
Court, reference was made to the mother’s
financial circumstances. This
included that her former husband was assisting her with the moneys to appeal,
that the mother’s
income comprised of maintenance, child support and
social security, that she had property interests in total of $21,263, but
liabilities
in excess of $200,000, and of that the bulk was owed to her former
husband.
- The
Full Court discussed at length the previous authorities in relation to security
for costs including making reference to Luadaka. It was observed that a
number of considerations described by the Full Court in Luadaka have now
been set out in Rule 19.05(2) to which we have already referred.
- Ansilda
& Hartford also raised the consideration of the significance of the fact
the litigant was impecunious in the context of an application for security
of
costs in an appeal. Reference was made to Adult Guardian and Mother’s
Parents v B and Child’s Representative [2002] FamCA 874; (2002) FLC 93-116:
- It
is of course a matter of serious concern that an impecunious appellant may be
prevented by the making of an order for the provision
of security for the costs
of the appeal, from pursuing his or her rights of appeal. However, that concern
must be balanced against
an equally serious concern for the position of a
respondent to the appeal who, in the event that the appeal should fail, and
because
of the impecuniosity of the appellant, will be left to bear the burden
of his or her own costs of successfully resisting the appeal.
- In
these circumstances, the difficult issue of the merits (or otherwise) of the
appeal must assume particular significance. As Toohey
J observed in Webster
and Another v Lampard (1993) 112 ALR 174 at 175:
Where
there is an appeal as of right ... it is more appropriate to consider the merits
of the appeal where security for costs is sought. An appeal may appear to
have little merit, in which case a court will be more disposed to order
security.
- Reference
was also made to JRS & KM [2005] FamCA 338; (2005) FLC 93-223 where the mother’s
application for security for costs notwithstanding the finding that the
father’s appeal had little
success and that he would be unable to satisfy
an order for security for costs was dismissed. The Full Court said in that case
at
79-688 that:
22. ... Nevertheless, the right of access to the
Court is an important right and any attempt to restrict that right
requires
careful scrutiny.
23. Notwithstanding the matters which we have identified as supporting
making an order for security for costs, we are not
persuaded that such
outcome would be justified in all the circumstances. On the evidence
before us, we are concerned that
the making of such order could preclude
the father from pursuing his appeal against orders which, inter alia,
deprived him
of face to face contact with his child, and also restricts
his future access to this Court. Not without considerable
reservations we
thus decline to grant the mother’s application.
65. In Ansilda & Hartford reference was also made to cases in
other courts including as follows:
34. We observe that in Croker v Deputy Registrar of the High Court
of Australia [2003] FCA 628 Madgwick J in dealing with an application
under s 56 of the Federal Court of Australia Act 1976 (Cth) which
provides for security for costs on appeal said:
[5] There has long been a rule of practice and justice that poverty is no
bar to a litigant. However, the view is taken that there
was an exception to
this salutary rule in the case of appeals on the basis that the appellant had
already had the benefit of a decision
of a court. Thus, an insolvent party
unsuccessful at the first instance, but seeking to appeal, had not been shut out
from the courts
on account impecuniosity but, as Ballam LJ put it in Cowell v
Taylor (1885) 31 ChD 34 at 38, would be “...only prevented, if he cannot
find security, from dragging his opponent from one Court to another”.
[6] The correct, modern approach, I think, was set out in Australian Solar
Mesh Sales Pty Ltd v Anderson [1999] FCA 1730; (1999) 48 IPR 15 at [11] by Sackville J. That is,
that the impecuniosity of the appellant enlivens the power of the Court to make
an order for security for
costs pursuant to s 56 of the Act, but it remains
necessary to consider whether, as a matter of discretion, the Court should make
an order in favour of
the respondents.
- This
case does raise for consideration the balancing exercise of requiring a
respondent to defend proceedings against an impecunious
applicant where there is
little likelihood of any costs order being satisfied with on the other hand the
undesirability of impecuniosity
in itself denying a right to bring proceedings.
Aside from the other matters which the court is required to take into account in
that situation, particular importance attaches to an assessment of the
likelihood of success and the terms of s 117(1)
that, subject
to certain matters, each party to proceedings under the Family
Law Act shall bear his or her own costs.
66. As mentioned, the
merits of the appeal were considered in some detail Ansilda &
Hartford, ultimately their Honours found:
- We
have read the reasons of Brown J and they are very detailed and comprehensive.
As well, her Honour dealt with all relevant statutory
considerations. With the
exception of the second area of complaint which we have identified above, we
have some difficulty understanding
the precise appealable errors contended for
in the grounds of appeal. For example we are of the view that ground one is not
a ground
of appeal. In the result we are of the view that the appeal does not
have strong prospects of success. However notwithstanding our
concerns, in a
broad way, we understand some complaints by the Mother and thus we cannot in
this brief examination conclude that
the grounds of appeal are entirely
hopeless. We therefore propose to proceed on the basis that there may be some
arguable grounds
in the appeal.
67. We are also of the view that the
appeals in this case do not have a strong prospect of success.
68. In this case as in Ansilda & Hartford there are unpaid costs
orders. The Full Court found that fact as particularly relevant, a matter
which is referred to in 19.05(2)(g)
in the Rules.
69. There is always more than one party to litigation. It is clear from the
authorities to which we have referred that on occasion,
the interests of a
party seeking to defend an appeal of doubtful merit must be afforded some
protection by the court.
Submissions of the husband
70. It is said in the husband’s affidavit filed in support of the
application for security in respect of NA 29 of 2010 on
9 August 2010
that:
- Although
I understand the reasons for judgement, I was disappointed with the relatively
low amount of costs which were ordered in
my favour, given the substantial
financial burden that these proceedings have been for me over many
years.
7. I wanted to speak to my lawyer about an application
that my costs be secured if this was possible, for [the wife’s]
appeal. ...
- I
understand that it will be many months before [the wife’s] appeal is
likely to be heard. I am very concerned about my ability
to support myself and
pay child support as has been ordered, with the ongoing legal costs I will
incur.
71. The husband further explains:
- I
filed an Application in a Case on 18 February 2010 seeking that [the wife] pay
my costs arising out of the proceedings related to
her application filed 30 July
2008 and which were the subject of the 21 January 2010 orders.
- By
the order dated 17 June 2010 [the wife] was ordered to pay my costs by way of
156 payments of $50 per week for a total of 3 years.
This equals a total costs
order of $7,800.
- In
paragraphs 56 of the 17 June 2010 order, Justice Watts states that ‘...a
just order would be for the wife to pay the full
$55,000...’ Justice
Watts, however, found that [the wife] would not have the capacity to meet a
costs order of that amount.
- On
22 June 2010 my lawyers wrote to [the wife] seeking that [the wife] commence the
weekly payments of $50 to me on 24 June 2010,
1 week after the date of the
order... I am yet to receive any payment from [the wife].
72. We
understand that the wife has made no attempt to pay the costs.
- The
husband also explains that he has not entered into a costs agreement with his
solicitor given the substantial costs that he has
“paid in this litigation
over the last nine years”. The husband is billed at a reduced rate by his
solicitor and also
by senior counsel who has previously represented him. Senior
counsel has since retired from the Bar and it is said that it is not
anticipated
nor expected that other senior counsel could be retained at the same rate.
- The
husband details numerous costs from the most recent proceedings, most of which
remain outstanding to his solicitors.
75. Under the section
characterised as “Rule 19.05(2) matters” it is said:
37. My solicitors have advised of the matters set out in Rule 19.05(2)
... I say as follows:
(a) I have set out my financial means in my financial statement filed with
this application.
(b) From my reading of the reasons for judgment the findings of Justice
Watts are clear and unequivocal.
(c) I am very concerned about my current precarious financial position which
is ostensibly a result of a decade of litigation initiated
by [the wife]. I have
had my home in ... Townville on the market for some time. I plan to use the sale
proceeds to pay the existing
debts I owe to my legal representatives. I do not
expect that the amount I could receive by way of net proceeds would cover these
existing debts, the fees I will incur as a result of [the wife’s] appeal
and the debt I still owe to my parents.
(d) [The wife] and I separated in 2000 and we entered into consent orders in
2001. Since that time [the wife] has consistently initiated
litigation based on
false allegations in an attempt to obtain a greater property settlement. The
result of the consent orders of
11 September 2001 was that our 3 children lived
with me. As part of those orders I received $15,000 from the sale of the former
matrimonial
home. This was by way of child support for the following 2 years at
a rate of $150 per week ($50 per child). The boys lived with
me full-time for
nearly 6 years without any other financial support from [the wife]. Since the
children returned to live with [the
wife] I have consistently paid child
support, their school fees, their private medical insurance and a multitude of
other incidental
expenses.
(e) [The wife] is not legally represented and so is not spending money
pursuing her appeal. The evidence at the trial in 2009 showed
that apart from
[the wife] refusing a greater amount of work at the [Hotel] because of
Centrelink issues, there was no restriction
on her ability to work there. The
evidence at the trial in 2009 also showed that [the wife] continued to gamble
regularly at the
Townsville Casino.
(f) I am not of the view that this matter involves a matter of public
importance.
(g) By the order of the Family Court dated 17 June 2010, [the wife] was
directed to pay me $50 per week for 3 years. My lawyers have
formally requested
that [the wife] commence making these payments. I have not yet received any
payments from [the wife]. I do not
believe that [the wife] would have the
capacity to meet a large costs order in my favour in the event that she was
unsuccessful in
her appeal.
(h) I am ordinarily resident in Australia. I have never lived outside
Australia.
(i) My solicitor has advised me that the likely costs of responding to [the
wife’s] appeal are not less than $29,000. My solicitor’s
estimate
(and I accept that it is only an estimate) of those costs are as follows:
- Taking my
instructions with respect to [the wife’s] application, for necessary
response: $2,000 - $3,000.
- Review of
transcript of 7 hearing days to consider [the wife’s] appeal points, not
less than 25 hours on scale fee: $4,000 -
$4,825.
- Preparation of
brief to counsel:
- solicitor 3
hours: $479;
- clerk including
copying 3 hours: $375.
- Counsel’s
fee for preparation for appeal hearing (taking into account 7 days trial) 2
days: $7,500.
- Counsel for
conferences: $1,000.
- Solicitor for
conferences: $1,000.
- Preparation and
reviews of appeal case outline, solicitor and counsel: $2,000.
- Counsel’s
fee for appeal hearing: $3,500.
- Solicitor’s
fee, day of appeal hearing: $1,600.
- Solicitor’s
airfare and accommodation: $1,000.
The above costs do not include
GST or any other out of pocket expenses including Brisbane agent’s
fees.
This is separate to the amount that I already owe my lawyers for the
proceedings thus far which as yet I have been unable to repay.
(j) I am not a corporation.
(k) I was not in receipt of legal aid for these proceedings. I have never
received legal aid.
76. The husband relies on the contents of the affidavit filed
9 August 2010 in support of his application for security
for costs in NA 29
of 2010, NA 21 of 2010 and NA 81 of 2010.
- In
the written submissions prepared on behalf of the husband the s
117(2A) factors are addressed. The oral submissions of the husband’s
solicitor added to these submissions. In particular, reference
was made to parts
of the substantive judgment about several matters including the trial
judge’s findings about:
- the
wife’s credit and her gambling (paragraphs 46, 47, 48 and 51); and
- the
wife’s ability to earn income and her choice to limit her income
(paragraphs 309 to 312).
- It
is said that although the husband is overall in a superior financial position to
the wife, his position is compromised due to his
support of the children and
ongoing legal expenses. It is submitted that the wife “has a capacity to
increase her financial
position through work which she simply refuses to
meet”. This submission is consistent with a finding made by the trial
judge.
- The
solicitor for the husband explains that the parties have been litigating for ten
years as a result of the wife’s “obsession
with litigation”.
The wife’s conduct is said to have had “a significant financial and
emotional impact” on
the husband.
- In
the written submissions filed on behalf of the husband it was
said:
The basis of this litigation is to set aside final property
orders made by consent in 2001. The [wife] has made a number of claims
as to her
consent in 2001 not being true consent. All of these claims were thoroughly
considered and were rejected, by the trial
judge. The [wife] simply refuses to
accept this determination.
- The
two costs orders made against the wife require her to pay the husband $60 per
week. The wife has not paid nor attempted to pay
the husband any of the modest
amount as ordered by Watts J. The wife has only appealed one of the costs orders
made against her and
has not sought a stay of the
orders.
82. Consequently, the husband submits that:
The Court can have no confidence that the [wife] will comply with any
potential costs order from the appeal when she has not compiled
to date with
costs orders tailored specifically to her stated financial circumstances.
Further, the [wife] has no real property or
other similar asset against which
any enforcement of a costs order following the appeal, could be brought.
- Further,
should the appeals be unsuccessful the husband could not otherwise be
compensated for the wife’s unmeritorious appeals.
By her own concession
the wife is impecunious and says she faces bankruptcy.
- It
is asked that the court take into account that the wife was wholly unsuccessful
in her application for property settlement before
Watts J. It is
said:
His Honour found the appellant had been either untruthful as
to the events of 11 September 2001 when the consent orders were signed
or had
“so reconstructed what had happened that her memory of those events was
totally unreliable”.
His Honour stated that he preferred
the evidence of the [husband] and his witnesses to those of the [wife] where
they were in conflict.
(footnotes omitted).
- As
to the prospects of success or merits of the appeal the husband submits that the
wife’s prospects are poor. It is explained
that the wife’s grounds
of appeal “are not clearly set out or particularised and many of them do
not form proper grounds
of appeal”, with many of the grounds seeking that
the court re-exercise their discretion.
- The
solicitor for the husband explains that what the wife is seeking in her
application is greater than the property pool available
for distribution. The
husband’s sole asset is his superannuation. The solicitor submits that it
would be unfair for the husband
to have to make a capital payment to the wife,
given the wife received all the proceeds from the sale of the former matrimonial
home
with the exception of $15,000 which the husband received for child
maintenance. At the time of the sale all three children were living
with the
husband.
- This
it is submitted is not a matter where it can properly be claimed that the trial
judge failed to consider matters raised by the
wife, nor is it a case where no
adequate reasons were provided. It is submitted:
... Watts J has now
delivered four Reasons for Judgment relating to this litigation, three of which
are the subject of appeal. The
first two Reasons for Judgment were delivered on
21 January 2010 and they comprise 74 pages and 19 pages. The third Reasons for
Judgment
delivered on 17 June 2010 (relating to the costs order
for the trial) is 9 pages.
- It
is also submitted that the wife is unable to properly agitate a complaint that
the trial judge failed to discharge his duty to
her as a litigant in person. The
husband submits that his Honour “conducted the trial carefully and with
due regard to the
[wife’s] position” and “took considerable
time and care addressing the [wife] during her case”.
- Further
it is said that no suggestions could properly be made that the trial judge was
biased against the wife. The wife, despite
there being opportunity, did not make
a complaint to the trial judge of bias during the hearing.
- The
husband submits that he is not the cause of the wife’s financial problems.
Rather, it can correctly be said that the evidence
in the trial revealed that
the wife’s financial situation is related to her gambling and her refusal
to work longer hours.
- The
husband acknowledges that a security for costs order, together with a stay until
such security is provided “may well create
difficulties for the [wife] to
continue her appeal at this time”. He submits:
... that the
Court is required to do justice to both parties, not just to the [wife]. The
Court must weigh up the injustice which
might be caused to the [husband] in
successfully defending the appeal without any prospect of being paid any costs
awarded, against
the right of the [wife] to continue the appeal.
Submissions of the wife
- The
wife opposes the husband’s application for security for costs. We received
very lengthy written submissions from the wife
together with an affidavit. The
wife regards the husband’s application as “a frivolous and vexatious
application to the
Court”, as both the husband and the husband’s
solicitor are said to be aware that the wife’s position is that she
is
impecunious.
- The
wife explains that should the husband’s application be successful and
should the five appeals not be heard without security
then she will have
“no option but to file for Bankruptcy”.
- The
wife states in her written submissions:
... [the husband] is well
aware of my financial situation as it is the direct fault of [the husband] and
his constant games and ongoing
litigation in the Family Court that has put me in
this position. It is also the result of the incompetence of the Legal
Representatives
involved on the 11th September 2001 who
allowed the Consent Orders to be signed and sealed by the Court without reading
them, disallowing me to read them
and allowing Mrs [P], Counsel for [the
husband] to write whatever her client wanted in the Orders and then allowing Mr
[F] who represented
me to put me under extreme duress until I signed them. There
has been shown gross negligence by the Separate Representative and Counsel
for
the children who has been categorical in telling the Court that they never spoke
to me until 6pm on the 11th of September 2001 after the
Orders had been sealed by Justice Monteith to explain what was in the
Orders.
- The
allegations made in this paragraph were those made in the trial before Watts J.
His Honour carefully considered those serious
matters and rejected the
wife’s evidence in a lengthy and reasoned judgment.
- For
the wife the husband’s security for costs application “is a
deliberate attempt to delay the five Appeals being heard”.
She explains
“[t]he reason for the attempted delay is obvious relating directly to the
residency of the children and the fact
that two children have moved to Brisbane
to study and work leaving only [A] at home”.
97. At paragraph
20 of her written submissions the wife states:
In the five Appeals filed in the Full Court I have provided sound grounds for
each. I have not attempted to bring these Appeals to
the Full Court as to waste
time or as a vexatious application but have brought these Appeals due to the
serious error of fact and
in some cases law that is obvious in the judgements. I
believe that as well as this error there is a gross perception of actual or
perceived bias against me as a Litigant in Person. As well as the previous
Appeals in this matter ... I have shown that the current
Appeals have merit and
need to be heard without any Security of Costs.
98. The wife explains:
- If
[the husband’s] Security for Costs application is allowed it will be of
far greater prejudice to myself and the children
than to [the husband] if he
does not secure the costs. [The husband] has insisted on the sale of the family
home for less than half
the value, created legal debts to more than half a
million dollars, created legal debts and further expenses to at least
$100,000.00
which I have had to continue to pay for and insisted that I withdraw
my full superannuation from the Commonwealth Public Service
Scheme and give it
to him to pay off the mortgage on our home. All of the above mentioned have been
ignored in the nine day hearing
before Watts J and dismissed in his
Judgement.
- It
is in the interest of justice that the five Appeals before the Full Court are
heard. If the Appeals are halted by a Security of
Costs Application being
allowed then my children and I will suffer a greater travesty of justice then we
suffered in 2001 when they
were placed in a highly abusive father and I was
removed from their lives and made homeless by the error of the Family Court in
Townsville.
99. The wife is of the view that:
The prospects of success are enormous in particular due to the apprehension
of bias of the Trial Judge, the limited disclosure by
the Respondent, the
refusal by the Trial Judge to tender relevant evidence and the refusal to accept
supbonea (sic) material that
had not been released by the Judge prior to cross
examination of the Respondent. Also the error of the Trial Judge to allow a new
witness to be called after the Appellant had finalized cross examination of her
witness.
- The
wife submits that the husband should “dismiss his legal team” and
represent himself. Alternatively, the wife asks
that the husband settle the
matter.
101. In concluding her written submission the wife
states:
- The
Appellant has been forced into over ten years of litigation by the Respondent
that has seen three Appeals at the Full Court allowed
and the Residency Orders
relating to three children overturned.
- The
costs, in particular of attaining safety for the children and the effort of
regaining our home, superannuation, inheritance etc
has now left the [wife]
impecunious.
- The
Judgements of Watts J do not mirror the evidence given in the Court at
Trial
- The
apprehension of actual or perceived bias throughout the Judgement is paramount
and continues throughout the subsequent judgments.
- The
[wife] has sound grounds of appeal and enormous prospects of success.
- The
[wife] is now facing Bankruptcy due to the [husband’s] continual
litigation and the errors contained in the Judgements of
Watts J. Also due to
the Family Court returning three children to my care without adequate, stable
income after allowing Consent
Orders that removes all of my property and money
in 2001.
- If
the Security of Costs Application is allowed then the Appeals will be stifled
and a fair and equitable property settlement will
never be achieved.
- The
Family Court of Australia has a responsibility to the Commonwealth Government to
ensure that the [wife] is able to support herself
in her old age. If the appeals
are not heard then the [husband] remains in receipt of my Superannuation and
Inheritance.
- The
[wife] at no stage accepted the Consent Orders of 11/09/01 which is obvious from
the document itself which does not have every
page signed or initialled and in
fact only the cover sheet is signed.
- Since
the return of the children to my care I now have debt of $22,600.00 with little
capacity to repay. This debt is as follows:
$9,000.00 costs, $8000.00 due to
arrears of unpaid child support and $5600.00 credit card debt.
- In
ordering that the wife pay security for costs it was ultimately said:
- We
are of the view that an order for security for costs should be made in this
matter. Acknowledging the difficulty the wife may encounter
in amassing such a
sum, it is plain that without security the husband has no prospect of recovering
his costs should the appeals
fail.
- To
the extent necessary for us to comment, we are also of the view that the appeals
have little merit, especially those appeals from
interlocutory orders, costs and
related to school incidentals. We have considered the reasons of the trial judge
in the substantive
matters and the other judgments. It is difficult to envisage
how the grounds of appeal as presently drafted could reveal error such
that
would lead to the appeal being allowed.
- By
reference to Rule 19.05(2) the following matters are considered in concluding
that the discretion should be exercised in this case:
- The financial
means of the wife reveal that should a costs order be made consequent on the
appeals being dismissed it is unlikely
that those costs will be paid. The
financial means of the husband are also poor.
- The prospects of
success of the appeal from the decision of Watts J in relation to the
substantive appeal, that is the s 79A application are poor. We have had regard
to the careful and reasoned judgment of his Honour and in particular his
findings adverse
to the wife. As to the other appeals they are relatively
trivial in nature.
- The wife is no
doubt genuine in bring these appeals, however the submissions and grounds of
appeal as proposed reveal a lack of understanding
of the appeal process.
- The wife’s
lack of financial means is not a result of the husband’s conduct.
- The question of
whether this order will stifle the appeal is of considerable importance. We note
that the trial judge found that the
wife had the capacity to earn an income. In
any event, it is clear from the authorities to which we referred that this
factor is
not decisive.
- The appeal does
not involve a matter of public importance.
- Costs orders
have been made that the wife has not paid despite their modest impost.
- The solicitors
for the husband have carefully provided information in relation to the likely
costs of the appeals.
- Neither party is
in receipt of legal aid.
- The
quantum sought for security was increased to $34,000 should all appeals be heard
together. While not wishing to convey that this
sum is excessive and accepting
that the husband is entitled to be represented by counsel on appeal we are of
the view that the sum
of $27,000 would make a sufficient contribution to the
husband’s costs should such an order be made consequent upon the appeals
or the majority of them being dismissed.
Application for Stay- Submissions of the wife
- In
the affidavit filed in support of the wife’s application for a stay of the
29 July 2011 orders, the wife explained that for
the last three months she has
been trying to obtain legal advice and instruct counsel to assist in the five
appeals without success.
The wife also explained that she has unsuccessfully
tried to obtain the $27,000 required to satisfy the security for costs order.
The wife said:
- I
have had no success in either convincing a Solicitor or Barrister in acting in
the matter and as stated in my Summary of Argument
at the Security for Costs
hearing I am impercunious (sic) and unable to even obtain a loan to meet the
Orders of the Full Court in
placing $27,000 in the bank account of [the
husband’s solicitors] by the close of business on the
31st October 2011.
- The
wife continued:
- The
only advice I have attained whilst in Brisbane was from The Caxton Legal Service
who advised that I need to file an Application
in the High Court and ask for a
stay on (sic) the current Orders. By the time I received this advice I was in
Brisbane and the files
required to make such an application were in Townsville.
By the time I could return to Townsville and make such an application I
was
already out of time.
- The
wife explained that she had been advised that to appeal to the High Court she
would need both senior counsel and a senior accredited
specialist in family law,
the cost of which has been estimated to be approximately $100,000.
- Although
the wife provided no evidence of this assertion she said that she has made an
application to Legal Aid Queensland to provide
her with the security for costs
and senior counsel to represent her. In her written submissions the wife
explained that although
she is entitled to Legal Aid funding her application was
rejected “due to the wrongful Judgment relating to Security of Costs
by
the Full Court”. The wife said that she will be appealing the decision of
Legal Aid.
- This
court does not understand how the wife would expect the Legal Aid Office (Qld)
to provide a lump sum for security for costs.
- In
her written submissions the wife maintained that had the transcripts of the
proceedings and had the exhibits been available to
the Full Court there would
have been “a different outcome”. It is not at all apparent why this
should be so.
- The
wife also explained that she asked to adduce further evidence in the form of an
affidavit from Jupiters Casino at the hearing
of the security for costs
application and that such an application was dismissed, as it was not made in
the appropriate form:
... I actually had made the appropriate
application in the form of an Application in an Appeal to adduce further
evidence which was
returned to me by the Registry unfiled when I returned from
the hearing.
- The
wife explained the importance of this further evidence in her written
submissions:
... As the information in the Affidavit was of
paramount importance pointing to the error in fact in the Judgment of Watts J
which
resulted in adverse findings regarding the [wife] (sic) it would have
alerted the Full Court to the bias and errors
in the initial
Judgment which would have been obvious had the Appeals progressed.
- It
is impossible to understand how this information could have affected the
discretion to order security for costs.
- In
an attempt, it seems to appeal to the same court, the wife claims the order is
unjust “because all relevant facts have not
been considered in the
Judgment of the Full Court”. The wife is of the view that the Full Court
should have obtained a full
copy of the transcripts before ordering that she pay
security for costs. Further it is said:
-
Comments made in the Full Court Judgment stating that the five Appeals before
the Court have little merit, that the financial means
of the husband are poor,
that the judgment of Watts J was careful and reasoned in his findings adverse to
the [wife], that the lack
of financial means of the wife is not a result of the
husband’s conduct, and that the Appeals do not involve a matter of public
importance makes it clear that the Full Court only relied on the evidence
available in the appeal books for the first three appeals
and a limited copy of
the transcripts already purchased by the Court.
- The
wrongful Judgment of Watts J in January 2010 has now led the Full
Court to reinforce that decision without full reference
of evidence and
transcripts.
- Further
it was said that the transcripts would show that the husband owed the wife child
support arrears and that he offered to pay
them in a lump sum.
- The
wife submitted “[t]he Security of Costs orders have now successfully
stifled the five appeals resulting in yet another injustice
to the [wife] with
long term consequences for the children of the marriage”.
- The
wife made reference to paragraph 3 of the reasons of the Full Court where it was
said:
It can also be observed that these applications highlight the
difficulty presented to courts in balancing competing interests when
litigants
are not legally represented, have an inability to meet costs orders if they do
not succeed in their applications and/or
appeals, while ensuring citizens have
access to the courts.
- The
wife submitted:
I refer to Point 3 in the Introduction of the
Reasons for Judgment of the Full Court stating the difficulty
presented
to courts in balancing competing interests when litigants are not
legally represented and have an inability to meet costs orders
if they do not
succeed while ensuring citizens have access to the courts. As a litigant in
person for the previous ten years after
paying for an Accredited Specialist in
Family Law to represent me at the beginning of this matter I believe that the
Full Court Judgment
has now denied me and the children of the marriage natural
justice. As would be seen in the transcripts the legal professionals who
were
cross examined showed gross professional negligence and misconduct and admitted
to their negligence on
11th
September 2001 when the initial orders were signed. The Judgment of Watts J in
2010 has again without the transcripts allowed the
Legal Services Commission to
reject my complaints.
- We
have already referred to the last paragraph of her affidavit filed in support
for her application where the wife said:
- I
seek that a stay be granted on the Security of Costs Orders of the
Full Court dated 29th July 2011 until Legal Aid
Queensland has approved or dismissed my Application and the necessary Appeal
rights have reached there
(sic) full potential. I also seek a stay on (sic) the
Orders until I have had a response from the State and Commonwealth Attorney
Generals Departments.
There was no evidence before us of
any application to Legal Aid (Qld) and if there were, the results of such
application and correspondence.
If it be relevant there was no evidence of any
correspondence with the State and Commonwealth Attorney-General
Departments.
Submissions of the husband
- It
was submitted on behalf of the husband that the wife’s stay application is
“neither appropriate nor warranted”.
It was submitted:
- The
[wife] does not demonstrate to this Court in any of her material filed on 27
October, that she has a willingness or ability to
pay any security for costs
order. Accordingly, it is submitted that there is no basis to stay or delay the
effect of the order of
29 July, in particular regarding the time required for
payment as referred to in paragraph 3 of that order, namely 31 October 2010
(sic).
- In
response to the wife’s submission that she intends to make an application
for special leave to the High Court, the husband
made reference to ss 94(2D)(f)
and 94(2F) of the Family Law Act 1975 (Cth) (“the Act”) being
in summary that “[n]o appeal lies from a security for costs order in
relation to an appeal”.
- The
husband submitted that all relevant facts relating to the security for costs
application were considered by the Full Court, and
that it was not necessary for
reference to be made to the full transcripts of the proceedings. Further, it was
said the “Full
Court was more than adequately appraised of the relevant
issues, in the security for costs hearing”.
- As
to the wife’s inability to pay the security for costs it was
said:
Whether a security for costs order would have the legal and/or
practical effect to stifle the appeals was a matter clearly before
this Court at
the hearing and was a matter properly considered by the Court in detail, in its
judgment. The [husband] says that there
are no consequences long term or
otherwise, for the children of the marriage. The children continue to be
supported by the [husband].
- In
response to the wife’s submissions regarding further evidence and child
support it was said:
The refusal by this Court to allow the [wife]
to adduce further evidence in the form of an affidavit from an employee of
Jupiters
Casino, was made (correctly, it is submitted) in the context of the
hearing being with respect to security for costs. There is no
basis for alleging
that there was bias and errors in the judgment of Watts J.
The applicant is wrong with respect to child support issues. The [husband]
continues to pay child support including a monthly cash
amount of $1,000 and
school fees, pursuant to the order of Watts J.
- It
is submitted on behalf of the husband that “there should be no further
delay in bringing this very lengthy litigation to
a
conclusion”.
Discussion
- In
regard to the wife’s complaint about the absence of a full copy of the
transcripts, it is of some benefit to appreciate the
positions of both parties
in addressing the transcript application before the Full Court on 31 May
2011:
Submissions of the wife
- In
her accompanying affidavit the wife explains that she has made enquires with
Auscript and that the cost of the required transcripts
is approximately
$8000.00. She submits that due to her current financial circumstances she cannot
afford to purchase the transcripts.
111. It is said by her at
paragraph 2 of the wife’s affidavit:
It is paramount to the hearing of the above Appeals that these transcripts
are available to the Full Court. It is clear that what
is in the Judgement of
Justice Watts for all of the above listed Appeals does not correlate to what was
given in evidence during
the hearings.
- Further
it is said “[t]his is a complex matter and I believe that the transcripts
for all of the Appeals need to be available
to the Full Court when the matter is
heard so that this matter receives a fair hearing”.
113. In
regard to the importance of the transcripts it is said:
...the Transcripts or at least some of the Transcripts will confirm the bias
in the Judgements and also totally refute statements
made by His Honour
regarding the highly professional behaviour of the Legal Representatives on
11 September 2001 when the Consent
Orders were signed.
- For
the wife “[i]t appears that what is written in the Judgment of Justice
Watts is certainly not a true encounter of actually
what happened in the Court
room”.
- In
her written submissions the wife refers to the decision of the Full
Court (Bryant CJ, Finn & Ryan JJ) in Sampson & Hartnett (Provision of
Transcript) [2010] FamCAFC 220 where a
non-exhaustive list of factors relevant to a consideration of whether the court
should purchase a transcript.
It is appropriate to set out portions of the
wife’s submissions in this regard to appreciate her
argument:
a. Whether the case is a financial or parenting
case.
...The [case] is now in its eleventh year on foot in the Family Court along
with three Appeal allowed in the Full Court. The [case]
could never be seen as
anything but an exceptional case.
- Whether
the whole transcript or part thereof is necessary for the determination of the
Appeal or part of the appeal.
...the Transcript should be purchased
to give a clear indication of exactly what happened at Trial.
- The
likely cost of the relevant transcript and whether the applicant can afford all
or part of the costs of the transcript.
...[The Husband] would also
be easily able to pay for the incidentals at the [G] School for his youngest
child and also pay for the
transcripts necessary to progress the Appeals...
I am not currently employed as a direct result of the economic recession
when the Hotel change ... downsized its personnel and has
now gone into
receivership. I have been unable to find other employment and simply have been
preoccupied managing the work load in
preparing legal material to file in the
Court.
- The
proportionality of the cost of the transcript to the appellant’s
anticipated costs in relation to the whole appeal, including
the pepration (sic)
of the appeal book (s).
I have had no choice over the past ten
years but to represent myself in the Court. My costs have not been minimal...the
time and
effort along with ongoing costs of trying to disprove the lies that
[the husband] so readily puts in Affidavits or Financial Statements
is a costly
exercise. Along with these costs are the cost of advice from legal practitioners
and the general costs of telephone,
internet and travel. Also the emotional and
psychological cost of representing myself in a field that I knew and still know
very
little about has been seriously damaging to my health...
- The
prima facie merits of the appeal.
- Whether
the questions of providing a transcript can be left to the Full Court hearing
the Appeal.
- ...the
history of the matter.
...The ongoing litigation initiated by [the
husband] in 2000 has placed an enormous financial and emotional burden on the
[wife]
and has had severe detrimental effects in every aspect of our
children’s lives. [The husband] along with his Counsel knew on
the day
that the Consent Orders were signed that they contained lies regarding my
superannuation, that he was prepared to sell the
former matrimonial home for a
valuation price that would not even paid the mortgage and the legal costs that
he had merrily accumulated
and would seriously jeopardize myself and our
children for the rest of our lives. The result that I desire is a fair and
equitable
property settlement taking into account the contribution of myself and
my parents in the total restoration of our home, the contribution
of my full
inheritance and the return of my superannuation as agreed.
- In
addressing the fact that the wife has unpaid costs orders against her, she
explains that she and the children are unable to live
on $300.00 per fortnight,
which is said to be the amount remaining after the payment of rent, credit card
debts and household bills.
She states that she “offered to tender a
financial statement to Justice Watts and he refused at the last
hearing”.
- In
concluding her written submissions the wife states “[i]n the interest of
justice the transcripts in these proceedings must
be purchased” and
“[t]o substantiate my claim and argue my case the transcripts of these
proceedings are of paramount
importance”.
Submissions of
the husband
- It
is submitted that there is nothing exceptional about this case. Rather it is
said “the wife’s conduct is exceptional”.
- It
is submitted that given the wife’s “wide ranging and vague”
grounds of appeal it would be necessary for the whole
of the transcripts to be
available so as to enable the grounds to be properly addressed.
- Given
the appeals concern property proceedings and it is submitted given the
wife’s prospects of success are poor, it is said
that the court’s
limited resources should not be expended on the purchase of the transcripts and
that the cost “places
too great a burden on the Court’s
budget”.
- The
husband explains that he is unable to afford to contribute to the costs of the
transcript. The husband is employed full time and
is not able to represent
himself. He states that the wife does have the capacity to earn additional
income and therefore an ability
to pay for the transcript. Given that the wife
continues to be self represented it is said that her costs are minimal.
- In
the circumstances of this case the solicitor for the husband submits that any
decision concerning the purchase of the transcripts
should be postponed pending
the wife’s payment of security costs. We think that this is an eminently
sensible approach.
- In
conclusion, the Full Court decided:
- As
an order will be made requiring the wife to provide security it is appropriate
to reserve judgment about the wife’s application
for the transcript.
- It
would not be appropriate for the court to incur the substantial cost of the
preparation of transcript should the appeal not be
heard. For that reason, we
will reserve our judgment in this matter until it becomes apparent that the
appeals will be heard.
- As
the wife has not paid the security and as we do not intend to extend the time
for payment there is no utility in the court incurring
the substantial cost of
preparing transcripts. The wife’s application in relation to the
transcripts will also be dismissed.
Conclusion
- In
the circumstances of this case we are of the view that the wife’s
application for an extension of time to pay the security
for costs should be
dismissed. On the wife’s own evidence there is no explanation as to how
she could satisfy the order and
so there is no utility in extending the
time.
APPLICATION FOR RE-OPENING
Submissions of the wife
- In
the accompanying affidavit to the wife’s application to re-open
NA 40 of 2011 and NA 41 of 2011 it was explained
by her that after the
29 July 2011 orders it has come to her attention that the husband “has
been in receipt of a
State Government Education Text Book Allowance since
2008”. The total benefit credited to the husband is said to be
approximately
$1,000.
- The
wife informs the court that since the children were returned to her care in 2007
she has met the costs of the children’s
school books and incidentals each
year.
- Further
the wife submitted:
- The
Orders of Justice Watts dated 17 November 2010 and 22
December 2010 arose from an Application to the Family
Court when [the husband]
refused to pay for the incidentals, being books and other essentials for the
children at [G School] backdated
to the 1st of January
2009 as Ordered by Justice Watts in his Orders of 21 January
2010.
- As
my Application to the Court regarding the refunded payment for incidentals was
refused by Justice Watts and I was Ordered to pay
costs of $1000.00 I now wish
to make an application to re-open my Application to seek reimbursement for the
incidentals and waiver
the costs.
- As
I do not pay the school fees at the [G] School I have never been in receipt of a
Statement from the school and therefore had no
way of knowing that the Text Book
Grant from the State Government even existed. During these proceedings [the
husband] failed to
state that he was in receipt of the grant. ...
- I
now seek that my Application relating to the incidentals of the [G]
School be re-opened if not settled out of Court.
I also seek that the Appeals
No. NA40 and 41 be separated from the other three Appeals before the Full
Court.
Submissions of the husband
- It
was explained on behalf of the husband that the text book allowance is paid
direct to the school and not to him. Further, it is
said that “the text
book allowance payment has been insignificant by comparison with the total fees
and educational costs the
[husband] has paid”.
- It
was said:
It is misleading for the [wife] to say that the [husband]
“has been happy for me to pay for the incidentals for the school for
all three children” given that the order of Watts J included a child
support payment separate from the payment of school fees, in the sum of $1,230
per month reducing to $1,000 per month for the child [A] only. Accordingly, the
[husband] has paid the [wife] not less than $1,000
per month nett (sic),
separate from the payment of the [G] School fees. The [husband] has thus
provided for the general living and
education expenses for the children in
addition to the wife-ranging order that he pay school fees and associated
expenses.
- The
husband opposes any of the appeals being heard separately from each other, and
submitted, generally, that the appeals “have
been dismissed by virtue of
the [wife’s] non-payment of the security for costs order”.
- In
conclusion it was said:
As he has done regularly over many years,
the [husband] denies abuse (financial or otherwise) of the [wife].
There is no basis for the [wife] being reimbursed for any costs when the
[husband] has properly and fully complied with the child
support orders of Watts
J.
Discussion
- If
the wife had paid security for costs it may have been open to her to apply to
adduce further evidence on appeal in relation to
this matter. Other than through
the appeal process there is no way this assertion by the wife can be raised. It
must be observed
that it is trivial in nature and seems to be fully explained by
the husband.
Conclusion
- The
application should be dismissed.
COSTS
- At
the conclusion of the hearing submissions as to costs were heard.
- As
we have decided to dismiss the applications it is only necessary for us to refer
to the submissions of the solicitor for the husband.
He holds no instructions to
ask for costs. There will be no order.
I certify that the
preceding fifty-one (51) paragraphs are a true copy of the reasons for judgment
of the Honourable Full Court (May,
Ainslie-Wallace & Young JJ) delivered on
1 December 2011.
Associate:
Date: 1 December 2011
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