Behman v Behman [2020] FCA 210

Behman v Behman [2020] FCA 210

Given that the Supreme Court proceedings were rendered futile when the bankruptcy trustee took over the case and Daniel's substantive claim under s 37A was successful, the Court determined Daniel would have succeeded and apportioned the costs accordingly, departing from the general no-costs rule. Macquarie Bank, not being a necessary party, was nonetheless entitled to reasonable costs, limited to those reasonably incurred.

Jurisdiction
Australia
Judgment Date
12 February 2020
Procedural Posture
Civil / Costs Order Following Transfer and Conclusion of Related Bankruptcy Proceedings
Outcome
Costs apportioned between parties; orders for detailed submissions regarding reasonableness of costs.
Legal Topics
['voidable Transactions' 'costs Orders' 'joinder of Parties' 'conveyancing Fraud']

Case Brief

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Procedural Posture

Civil / Costs Order Following Transfer and Conclusion of Related Bankruptcy Proceedings

  1. 1 ['Whether the costs of the proceedings should be apportioned between the parties following related bankruptcy proceedings' 'Whether Macquarie Bank was a necessary party and entitled to its costs' 'Whether offers of settlement affected costs orders']

Ratio Decidendi

Given that the Supreme Court proceedings were rendered futile when the bankruptcy trustee took over the case and Daniel's substantive claim under s 37A was successful, the Court determined Daniel would have succeeded and apportioned the costs accordingly, departing from the general no-costs rule. Macquarie Bank, not being a necessary party, was nonetheless entitled to reasonable costs, limited to those reasonably incurred.

Court Disposition

Costs apportioned between parties; orders for detailed submissions regarding reasonableness of costs.

Orders

  • ['Second and third respondents to pay applicant’s costs up to 29 May 2019 and from 1 November 2019 on a lump sum basis.' 'Applicant to file submissions and schedule of costs within seven days to enable court assessment.' "Applicant to pay fourth respondent’s (Macquarie Bank's) costs up to 29 May 2019 and from 1...