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Panshin & Farmer [2013] FamCAFC 10; (15 February 2013)
Last Updated: 22 February 2013
FAMILY COURT OF AUSTRALIA
FAMILY LAW – APPEAL – stay of orders
– impending settlement of sale of property
|
Bryant v Commonwealth Bank of Australia
(1996) 134 ALR
460 De L v Director-General, Department of Community Services (NSW)
[1996] HCA 9; (1996) 136 ALR 201
|
DATE ORDERS MADE:
|
1 February 2013
|
LOWER COURT JURISDICTION:
|
Family Court of Australia
|
LOWER COURT JUDGMENT DATE:
|
10 July 2012 and
8 October 2012
|
REPRESENTATION
COUNSEL FOR THE
RESPONDENT:
|
|
SOLICITOR FOR THE RESPONDENT:
|
|
ORDERS
(1) The
application for a stay of the settlement of the sale of the property at C be
dismissed.
(2) The appellant pay the respondent’s costs of and incidental to the
application for a stay in the sum of $3,000, with such
sum to be paid on
finalisation of the property settlement proceedings between the parties.
IT IS NOTED that publication of this judgment by this
Court under the pseudonym Panshin & Farmer has been approved by the
Chief Justice pursuant to s 121(9)(g) of the Family Law Act 1975
(Cth).
THE FULL COURT OF THE FAMILY COURT OF AUSTRALIA AT SYDNEY
|
Appeal Number: EA 101 of 2012
File Number: SYC 2252 of 2011
Appellant
And
Respondent
REASONS FOR JUDGMENT
INTRODUCTION
- On
1 February 2013 the appellant, Ms Panshin, sought an order that this Court stay
the impending settlement of the sale of a property,
the subject of orders by a
Federal Magistrate. That application was refused and I indicated that reasons
for the refusal would be
delivered later. These are the reasons for the refusal
to make the order sought.
BACKGROUND
- Some
background to the application is helpful.
- Proceedings
for property settlement between the appellant and Ms Farmer (“the
respondent”) were commenced in the Federal
Magistrates Court and a hearing
began in July 2012.
- When
it became apparent that the matter would not conclude, on 10 July 2012 the
respondent sought interlocutory orders in relation
to the occupation and sale of
a property, jointly owned by the parties at C (“the property”). The
appellant opposed
that application. She sought, as a final order, that the
title of the property be vested in her. The respondent sought orders for
a sale
of that property and a division of the net proceeds. The issue of property
settlement remains to be determined in the resumption
of the part heard
proceedings.
- The
Federal Magistrate made orders for the sale of the property and further ordered
that in the event that either party failed to
do any act required to give effect
to the sale, the respondent be appointed trustee for the sale of the property.
The Federal Magistrate’s
orders provided that the sale proceeds, after
deduction of costs and expenses and discharge of the mortgage and any other
debts on
the property, be held in a controlled monies account pending
disposition of the property settlement proceedings between the parties.
- On
8 October 2012 the Federal Magistrate made further orders restraining the
appellant from approaching the property and stayed the
orders for sale until
17 October 2012.
- The
matter is part heard before the Federal Magistrate and is listed for further
hearing in February 2013.
- The
appellant appealed from the orders of 10 July and 8 October 2012. The
respondent agreed to take no further step on the sale
of the property pending
the hearing and determination of the appeal.
THE APPEAL
- The
appeal was heard by Coleman J on 14 November 2012.
- Given
the nature of the orders made by the Federal Magistrate, the appellant required
leave of the Full Court to bring the appeal.
No leave was sought but no
objection was raised on behalf of the respondent to the issue of leave being
considered by his Honour.
- Equally,
the appeal against the orders of the Federal Magistrate was brought outside the
time prescribed for the filing of such an
appeal. No extension of time to do so
was sought. Again, no objection was raised by the respondent by reason of that
failure.
- The
application for leave to appeal was dismissed in reasons for judgment delivered
on 30 November 2012.
- Coleman
J referred to the findings of the Federal Magistrate and observed that the
evidence before the Federal Magistrate suggested
a market value of the property
of $925,000. Approximately $660,000 was owed to the bank under the mortgage on
the property. In
addition, the Federal Magistrate found that the appellant had
further debts of $22,600 on MasterCard and $11,663 on a personal loan.
The
Federal Magistrate, having recorded these facts, observed that the
appellant’s financial position was “parlous”.
- More
particularly, the Federal Magistrate found that as at January 2012, the mortgage
was in arrears of $18,534 and on 18 January
2012 the bank had issued a notice
pursuant to s 57(2)(b) of the Real Property Act indicating an intention to
enforce the debt by repossession and sale of the property.
- It
seems that the appellant had lodged a complaint about the bank to the Financial
Ombudsman Service and she contended that the fact
of an unresolved complaint
operated as a stay of any enforcement by the bank. This issue was raised before
Coleman J and before
this Court on the application for the stay and it is as
well to include here the Federal Magistrate’s findings on the matter.
- His
Honour, Coleman J observed:
[26] In paragraphs 17 and 18 of his
reasons for judgment, which attracted considerable attention before this Court,
the learned Federal
Magistrate recorded:
The evidence before the court does not support the respondent’s
contention that the complaint, in effect, operates as a stay
of enforcement on
the mortgagee. Indeed, exhibit R9 is evidence that the Financial Ombudsman
process is exhausted. This must be the
case. For one thing, there is no
evidence at all that the respondent can comply with the terms of the resolution
agreement, that
is to say, repay the home loan on or before 5 October. It is
abundantly clear that the respondent will never voluntarily surrender
the
property to the bank before 5 October. The stay on enforcement was only offered
until 5 October.
The Financial Ombudsman Service dispute resolution scheme does not work on
the basis that a credit provider’s rights are stayed
until such time as
the complaint is resolved to the satisfaction of the complainant. What it
provides for is a reasonable opportunity
for discussion, offer and compromise.
That is what exhibit R9 evidences. The court does not accept that if the
respondent simply
keeps ignoring or rejecting offers of compromise made by the
bank that she can indefinitely postpone enforcement.
[27] The concerns articulated by the learned Federal Magistrate in his
reasons for judgment of 10 July 2012 were reiterated in paragraph
19 of his
reasons for judgment on 8 October 2012. His Honour there recorded:
There is no evidence before the court to satisfy it that by virtue of some
provision under the Financial Ombudsman Scheme initiated
by the respondent that
there is any less risk of the mortgagee exercising its power of sale or
enforcement in a situation where there
are substantial arrears and where only
the interest is being serviced. In this regard, the matters of risk identified
by the court
in its reasons of 10 July remain unchanged. The respondent now has
had two opportunities to demonstrate that somehow the complaint
to the Financial
Ombudsman scheme removes the risk. She has failed twice.
- The
Federal Magistrate noted that the appellant had reached an agreement with the
bank to the effect that it would stay recovery action
for three months (from 5
July 2012) to enable her to refinance the loan. He also observed that the
letter from the bank was clear
that if the loan was not repaid by 5 October
2012, the appellant would relinquish the property to the bank for sale. The
Federal
Magistrate observed that the appellant said she was not a party to this
agreement with the bank, nor did she agree with it.
- Coleman
J considered the Federal Magistrate’s findings on the appellant’s
proposal that she refinance the property:
[38] Having referred to
the submissions on behalf of the parties, the learned Federal Magistrate
recorded the submission on behalf
of the appellant that:
44. ... if given the opportunity, the respondent would re-finance the debt in
three months, that she could find work quickly, that
there is no risk of loss of
the property, and that indeed the respondent’s mother may be able to give
her money to pay the
mortgage.
[39] Under the heading “Discussion” the learned Federal
Magistrate revealed the reasoning which led to his decision. The
learned Federal
Magistrate was satisfied:
45. ... that there is a real risk that the mortgagee, the Commonwealth Bank
of Australia, will exercise its powers, the powers it
clearly has, to sell the
property given the arrears that have accumulated, much of which, though not all,
coincides with the respondent’s
occupation of the home and non-payment of
the mortgage - all at a time when she clearly was in receipt of money that could
have been
used for this purpose.
[40] His Honour recorded, accurately:
46. The respondent’s position remains that she wishes to retain the
property and re-finance the debt. She cannot do that without
agreement from the
applicant or Order of the Court. Her position in this litigation is that the
applicant should retain what she
has - that is, that the respondent would pay
her nothing. The respondent therefore has no motivation to sell this property.
Given
the urgency that I perceive, I could not safely entrust to her the
responsibility for sale.
[41] Ultimately his Honour concluded:
47. There appears to be no reasonable alternative to sale, given the section
57(2)(b) notice and the lack of confidence I have in
the respondent. Her
proposal is not one the applicant will accept.
[42] For reasons which he detailed, the learned Federal Magistrate concluded
that:
48. ... leaving her [the appellant] in the property is not realistic, will
not address the concerns that I have expressed above, and
this means that
ordering the sale of the property really is the only alternative.
- Coleman
J turned to the proposed grounds of appeal. He found no merit in any of them.
- The
thrust of the appeal was that the Federal Magistrate was in error in
characterising the order for the sale of the property as
an interim order for
property settlement and further challenged his findings as to the effect of the
engagement of the Financial
Ombudsman Service in an attempted resolution of the
issue with the bank.
- His
Honour, Coleman J said in relation to the source of power identified by the
Federal Magistrate by which he made the challenged
orders:
[49] With
respect to the learned Federal Magistrate, the more appropriate source of power
for the orders made by him was probably
the injunctive power provided by s
114(3) of the Act, given that his Honour’s orders were in reality
mandatory injunctive orders
for preservation of the property of the parties, and
did not involve “settling” property upon either party or altering
the interests of the parties, as between themselves, in the property. However,
the Court is not persuaded that his Honour was wrong
in regarding the
application in the way he did, or that his Honour could not have made the orders
he did by way of interim property
settlement, albeit s 80 did not provide the
power to do so.
- However,
Coleman J observed at [46] that the order relating to the sale was informed by
(the Federal Magistrate’s) findings
and that to delay the sale of the
property would, “...for the reasons his Honour articulated, be likely to
result in the property
of the parties being diminished given that the present
respondent sought the sale of the property and that the appellant who opposed
its sale could not, on the evidence before his Honour reasonably hope to avert a
mortgagee sale of the property, in circumstances
where the parties’ equity
in the property was being, and would continue to be eroded”.
- Coleman
J concluded at [51] that whether the Federal Magistrate was making an interim
property order or an injunction, the exercise
of his discretion was
“essentially the same”. He said:
[59] Accepting that
the learned Federal Magistrate approached the application for the sale of the
property, in reliance upon the Court’s
powers to make orders for
settlement of property rather than the Court’s injunctive powers, the
Court is not persuaded that
the learned Federal Magistrate erred in the
exercise of his discretion by failing in any of the respects articulated in
support of
this complaint. His Honour clearly directed his attention to all of
the matters which the authorities suggest were relevant and appropriate
to
consider in the light of the facts as found by him.
[60] As noted earlier, and as suggested to Counsel for the appellant during
the hearing in this Court, the fate of the “appeal”
ultimately turns
upon whether a number of critical findings of fact relied upon by the learned
Federal Magistrate can be shown to
have not been reasonably open to him. As
is not in doubt, those critical findings of fact included the ability of the
appellant to
avoid a sale of the property by the Bank in the exercise of the
powers conferred upon it by the mortgage it held over the property,
it not being
in doubt that the mortgage was in continuing default, and whether, apart from
the bank’s entitlement, ordering
the sale of the property was necessary to
protect the parties’ dwindling equity in it. If his Honour’s
critical findings
of fact remain undisturbed, the proceedings could not have had
any other outcome, even if the “principles” governing
applications
for interim property settlement were not fully observed.
- As
to the effect of the involvement of the Financial Ombudsman Service, his Honour
at [73] referred to passages from the reasons of
the Federal Magistrate in
relation to the orders of 8 October 2012 in which the Federal Magistrate said,
referring to the letter
from the bank dated 5 July 2012 and in which it agreed
to stay any action on the mortgage for three months:
73. In the
learned Federal Magistrate’s subsequent judgment of
8 October 2012,
his Honour reiterated that:
17. ... exhibit R9 is evidence that the Financial Ombudsman process is
exhausted. This must be the case. For one thing, there is no
evidence at all
that the respondent can comply with the terms of the resolution agreement, that
is to say, repay the home loan on
or before 5 October. It is abundantly clear
that the respondent will never voluntarily surrender the property to the bank
before
5 October. The stay on enforcement was only offered until
5 October.
74. On 8 October 2012, the learned Federal Magistrate further recorded
that:
18. The Financial Ombudsman Service dispute resolution scheme does not work
on the basis that a credit provider’s rights are
stayed until such time as
the complaint is resolved to the satisfaction of the complainant. What it
provides for is a reasonable
opportunity for discussion, offer and compromise.
That is what exhibit R9 evidences. The court does not accept that if the
respondent
simply keeps ignoring or rejecting offers of compromise made by the
bank that she can indefinitely postpone enforcement.
19. There is no evidence before the court to satisfy it that by virtue of
some provision under the Financial Ombudsman Scheme initiated
by the respondent
that there is any less risk of the mortgagee exercising its power of sale or
enforcement in a situation where there
are substantial arrears and where only
the interest is being serviced. In this regard, the matters of risk identified
by the court
in its reasons of 10 July remain unchanged. The respondent now has
had two opportunities to demonstrate that somehow the complaint
to the Financial
Ombudsman scheme removes the risk. She has failed twice.
- Coleman
J concluded on this point that the appellant had failed to demonstrate that the
Federal Magistrate’s findings had not
been reasonably open to him.
- His
Honour concluded that the appellant had not established that the Federal
Magistrate’s discretion had miscarried in any appellate
sense. He
concluded that as the Federal Magistrate’s findings of fact as to the fate
of the property were not successfully
challenged, “the proceedings could
not have had any other outcome”.
- His
Honour Coleman J concluded that, there being no error shown in any of the
proposed grounds of appeal and the further evidence
sought to be brought by the
appellant did not demonstrate that the decisions under challenge were erroneous,
declined to grant leave
to appeal.
- As
I have indicated, his Honour’s reasons and orders on the appeal were
delivered on 30 November 2012. The appellant’s
application for Special
Leave to appeal to the High Court was filed on 31 January 2013 as was the
application for stay in this Court.
The application for Special Leave was not
filed in the time provided by the High Court rules. Within the application, the
appellant
seeks an extension of time in which to bring the application for
Special Leave. For the purposes of dealing with the application
for a stay, I
propose to treat the application for Special Leave as being brought within the
time prescribed by the High Court rules.
THE APPLICATION FOR A STAY
- The
application for stay was listed before the Full Court as a matter of urgency,
the appellant contending that settlement of the
sale of the property was to take
place on that day, 31 January 2013. It is unclear whether the appellant had
successfully given the
respondent or her solicitors notice of the intended
application for stay. However, once the matter was listed, the Registry of this
Court notified the respondent and her solicitors of the listing. Counsel for
the respondent appeared by telephone and, indicating
that he had no instructions
in the matter, sought the application be adjourned until the following day,
1 February 2013. Counsel
for the respondent informed the Court that the
settlement of the sale of the property was due to take place on 1 February 2013
at
2pm. Over the appellant’s objections, the matter was adjourned.
- In
the adjournment, the appellant filed two further documents, an amended
application in an appeal and a further affidavit. Counsel
who appeared for the
respondent had not been served with these documents but copies were made
available and submissions on the application
proceeded. On 1 February 2013, the
appellant appeared by telephone as she had on 31 January 2013.
- The
Amended Application in an Appeal sought the following orders:
1.
1. Please Stay the settlement/sale of my Home [C property] URGENT PLEASE
2. 2. I am seeking this please as an appeal has been lodged in the
High Court of Australia.
3. 3. Please Stay all of Colemans orders until High Court Decision
4. 4. The property is settling I was told 31.1.2013 and it this was
changed without my being inform. I have also not been
informed of the
purchaser, purchasers lawyer, the location, time.
I have been totally abused and denied my rights as the owner form the process
and documents and obligations and I request she is removed
due to her abuse of
power. I also did notices to produce as the contract was changed to an illegal
on e that is high risk and does
not discloes the issues and has a bodgy
engineers report. I requested this information in a case application after
requesting fair
information, doing notices to produce, [Farmer] did not turn up
and Altobelli ignored all of my rights for disclosure, refusing my
fair
reasonable order request for this and preventing my ability to do final orders,
I have filled an appeal. My file is missing
critical information Altobeli has
removed: my final orders of july 2012, my chronology and issues statment he
asked for and all of
my matters submission. On the day I was denied to provide
evidence of over 40 items and 2 videos I proving ms [Farmer] was smashing
up the
house the other proving ms [Farmer] framed me with police and her affidaits were
a lie.As I am to be on the street and he
took 18 days with a 72 hour listing
putting prolific obsticals in my my way, when with theother side he does it
quick not doc s and
on orders they had up always ignoring mAt the time I
requested money from the sale untl I found out I coudl still appeal and have
it
heard in a fair court. Due to the sever injustice in extreme hardship this
matter has created due to ms [Farmer] need for power,
control revenge and kill.
Leave with hate not love which is opposite to my being and core and morals. I am
a fish out of water.)
-
5. I return to the property by my 42 birthday ... and or it is rented out by
[Ms R] at ... Properties for 850 plus per week. This
money is used for the
loans and/or for the prospective purchaser.
- 6. Ms
[Farmer] pays half her wage spousal maintenance for damaging. From today
1.2.2013 every 2 weeks. $900. I request this please
to prevent ms [Farmer] from
abusing me and intimidating me and to help me get back on my feet and this
matter is over (3-6 months).
This is the only way to stop her as she is lying in
court and seeking revenge for money and being immoral cruel. This may prevent
her from attacking me, my car, my car and my property and technically sabotaging
my IT and that of my legal people. I have been her
defacto wife since 2005 and
she never paid for me while I made us money and she put all her extra into
herself and her super, while
my home is my super.
- The
legal agent Ms [Farmer] Choose responds to me and ms [Farmer] is removed as
trustee and the restraint illgally gove in removed
- The
agent More legal provides before any decsions are made on this appeal a legal
contract on the property they say is settling the
1.2.2013 yet failed to advise
me telling me 31.1.2013 and giving me an illegal contract. Without purchaser
name and or lawyer. I
waited and requested for months a contract and details and
was told a different purchaser and Ms [Farmer] only 5 weeks after the
exchange
gave me a viod and illegal contract she changed with apparently different
purchasers, that is putting me at risk of being
sued for 200K of damages still
in the property. I request please a copy of the
- I
request all documents the trustee has and has refused to give me from the
sale
- A
copy of the sales agent sales sheet to be provided by [name omitted] showing his
payment of fees, ad costs, purchasers etc. Before
any decsions is made by the
appeals court plesase
(errors and numbering as in original)
- The
affidavit in support of the application was drafted by the appellant and, with
respect to her, while clearly articulating her
distress at the outcome, does not
deal with all of the issues necessary to found a stay. Nevertheless, it is
clear that the appellant
contends that the Federal Magistrate and Coleman J were
wrong in their understanding of the law. The appellant also relied on the
written submissions made on her behalf to Coleman J in support of her
application. I have read those submissions, which, in any
event, are
significantly referred to in his Honour’s reasons. Also attached to the
affidavit is the Application for Special
Leave and the matters to which the
appellant would draw the attention of the High Court.
- In
her application for a stay, the appellant argued that his Honour Coleman J was
in error in his findings in several particular respects,
although I understood
her submissions to be that, generally, his Honour was wrong in failing to give
her leave to appeal and upholding
the challenges to the Federal
Magistrate’s orders.
- The
particular matters argued on the stay were his Honour’s findings as to the
source of power used by the Federal Magistrate
in making the order for sale and
the effect of the engagement with the Financial Ombudsman Service on the
bank’s entitlement
to sell the property under the mortgage.
- It
is important to note that the Application for Special Leave to appeal to the
High Court was brought after the time for bringing
such an application had
expired. The application for a stay was brought on the day on which the
appellant believed the settlement
of the sale of the property was to have taken
place. The application for a stay was listed by the Court as a matter of
urgency late
in the afternoon. The appellant said that the delay in bringing
the application for a stay was the result of her being “devastated”
and “confused” by the outcome of her appeal, the Christmas break
when the Court was closed and not being able to afford
a lawyer. I am unable to
make an assessment of the strength of the explanations but, in the result,
nothing turns on the explanation
given for the delay in seeking the
stay.
POWER OF THIS COURT TO ENTERTAIN THE APPLICATION FOR A STAY
- No
issue was taken by counsel for the respondent to the power of this Court to
entertain the stay application. The appellant was
entitled to seek a stay from
this Court (See De L v Director-General, Department of Community Services
(NSW) [1996] HCA 9; (1996) 136 ALR 201).
- It
is clear that, his Honour Coleman J having disposed of the application for leave
to appeal the orders of the Federal Magistrate,
there is no appeal extant in
which the application could be brought, as the documents filed by the appellant
are styled.
- The
principles to be applied in such an application are well known. In Bryant v
Commonwealth Bank of Australia (1996) 134 ALR 460, Kirby J said at
[5]:
5. ...Repeatedly, the Court has emphasised that the
jurisdiction to grant a stay is exercised only in very exceptional
circumstances.
It is "extraordinary". In Jennings Construction Ltd v Burgundy
Royale Investments Pty Ltd (No 1) (6), Brennan J stated the approach
to be
taken:
In exercising the extraordinary jurisdiction to stay, the following factors
are material to the exercise of this Court's discretion.
In each case when the
Court is satisfied a stay is required to preserve the subject-matter of the
litigation, it is relevant to consider:
first, whether there is a substantial
prospect that special leave to appeal will be granted; secondly, whether the
applicant has
failed to take whatever steps are necessary to seek a stay from
the court in which the matter is pending; thirdly, whether the grant
of a stay
will cause loss to the respondent; and fourthly, where the balance of
convenience lies.
- Turning
first to the issue of the prospect of special leave being granted. As I have
indicated, the Application for Special Leave
challenges the basis on which the
order for the sale of the property was made, and argues that the power exercised
by the Federal
Magistrate in making the order for sale was not by way of interim
order for property settlement but was an interlocutory order.
Further challenge
is made to the asserted error by the Federal Magistrate in his findings about
the Financial Ombudsman Service.
The document, while extensive, traverses
matters raised in the appeal and in respect of which Coleman J found raised no
appellate
error. I am not satisfied that the appellant has a substantial
prospect of being granted special leave to appeal.
- The
next relevant matter to consider is whether, by making the stay, loss will be
occasioned to the respondent. Counsel for the respondent
argued persuasively
that should the settlement of the sale be stayed there will be inevitable loss
to the respondent by the continued
diminution of the equity of the property
through the mortgage debt increasing. Further, it was argued that there would
be consequences
not only for the respondent and the appellant but the purchaser.
It is to be observed that the appellant offered an undertaking as
to damages.
The respondent did not suggest that the appellant could not meet any damages as
may flow to the respondent as a consequence
of the stay, the damages to be met I
assume from the appellant’s share of the net proceeds of the sale of the
property. Counsel
for the respondent did argue that the appellant’s
undertaking may not be sufficient to meet any damages that the purchaser
may
obtain. Counsel for the respondent further argued that the stay would operate
as a significant delay to the matter. He submitted
that there was no indication
from the appellant as to when her Application for Special Leave might be heard
which, he argued, would
further complicate the situation with the property with
the result that the mortgage debt and arrears would increase and the proceeds
available to the parties diminish, to the prejudice of both parties.
- The
appellant argued that to fail to order the stay would render her appeal
nugatory. I accept that. The appellant’s position
before the Federal
Magistrate, maintained before Coleman J, before me on the stay and in the
submissions on the special leave application,
was that the property should be
preserved and she be given the opportunity to refinance the mortgage. The
failure to grant a stay
has had the effect that the property will be sold. The
appellant brought no evidence on the stay to make good her assertions that
she
could refinance the mortgage or, indeed, that she had that financial capacity.
- Finally,
I turn to the balance of convenience. That overwhelming tells against granting
the stay. The proceedings between the parties
are incomplete. The respondent
has an interest as does the appellant in finality of the litigation. The
property sale will act
to preserve as much of the equity as possible for the
benefit of both parties.
- For
these reasons I refused to stay the order for settlement of the sale of the
property.
- I
observe that the amended application filed by the appellant sought a variety of
orders including a claim for spouse maintenance
to be paid by the respondent and
an order for the delivery of documents. I do not understand that this Full
Court has any power
to make such orders and to that end I declined to make any
of the orders sought by the appellant.
COSTS
- At
the conclusion of the hearing, counsel for the respondent sought an order for
costs in defending the application. He argued that
the application was
misconceived and was wholly unsuccessful and that it was a proper case in which
the appellant should pay the
respondent’s costs. Counsel indicated that
those costs were claimed in the amount of $5,000. He submitted that the
respondent
would be content for such other sum as the Court considered
appropriate.
- The
appellant felt unable to make submissions on costs at the conclusion of the case
being distressed at the outcome. I ordered that
she make written submissions on
the issue of costs by Friday 8 February 2013.
- The
appellant’s submissions reflected her distress at the outcome of the
proceedings for the stay but do not address any issue
relevant to the question
of costs.
- The
issue of costs in Family Court matters is informed by s 117(1) of the Family
Law Act 1975 (Cth). It provides that, subject to the following subsections
of that section, parties to proceedings under the Act should pay their
own
costs. Section 117(2) provides that a Court may make an order that a party to
pay costs. Section 117(2A) sets out the matters to be considered when
determining what order, if any, should be made under s 117(2) and I shall refer
to those that I consider relevant to this matter.
- The
financial circumstances of the parties. It appears that the appellant is not
working and, it seems had invested her superannuation
into the C property
property. She asserts that the respondent has funds for which she has not
accounted but there is no basis on
which I could find it to be so. However, it
seems that when the property is sold there will be net proceeds for division
between
the parties. I was informed and there was no apparent dispute that some
funds were to be paid to each of the respondent and appellant
from the proceeds
before the balance of the money was to be held in the controlled monies
account.
- The
appellant has been wholly unsuccessful in her application for a stay. The
application was not one brought in the usual course
of proceedings in this
Court, the Full Court had heard and determined her application for leave to
appeal the orders of the Federal
Magistrate. That circumstance together with
the fact that the application was unsuccessful persuade me that it is
appropriate to
make an order that the appellant pay the respondent’s costs
of meeting the application for a stay.
- The
appellant complains that the barrister who appeared for the respondent sought
and was granted an overnight adjournment to consider
the matters raised by the
appellant. The matter was brought before the Court the following morning when
counsel appeared in person.
As I have indicated, it is not clear whether the
respondent or her legal representatives had been served by the appellant. It was
entirely reasonable for the respondent to have time to consider the application.
- The
respondent seeks a sum of $5,000 in costs. Counsel for the respondent argued
that if the Court was of the view that some other
sum was appropriate, the
respondent would accept the Court’s determination rather than seek
assessment of the amount. I am
of the view that, having regard to the nature
and timing of the application, some lesser sum is appropriate. I fix the
respondent’s
costs in meeting the application for stay at $3,000.
- I
will order that the payment of those costs abide the finalisation of the
property settlement proceedings before the Federal Magistrate
or their
compromise by settlement.
I certify that the preceding
fifty-three (53) paragraphs are a true copy of the reasons for judgment of the
Honourable Full Court
delivered on 15 February 2013.
Associate:
Date: 15 February 2013
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URL: http://www.austlii.edu.au/au/cases/cth/FamCAFC/2013/10.html