El-Debel v Micheletto (Trustee) (No 2) [2021] FCAFC 146

El-Debel v Micheletto (Trustee) (No 2) [2021] FCAFC 146

Where appellants achieve limited or partial success and respondents are, for practical purposes, the successful party, costs should be awarded with adjustments for the degree of success via percentage reductions, unless disentitling conduct substantiates a different order.

Parties
First Appellant: Bachar El-Debel; Second Appellant: Fatme El-Debel; Third Appellant: Ronia Ayad; Appellant: Fallow Investments Pty Ltd; First Respondent: Fabian Kane Micheletto in his capacity as joint and several trustee in bankruptcy of the estate of Bachar El-Debel; Second Respondent: Michael Carrafa in his capacity as joint and several trustee in bankruptcy of the estate of Bachar El-Debel
Jurisdiction
Australia
Judgment Date
17 August 2021
Procedural Posture
Appeal / Determination of Costs After Partial Success in Related Appeals
Outcome
Appellants ordered to pay respondents' costs with percentage adjustment reflecting limited success; costs to be assessed if not agreed.
Legal Topics
Bankruptcy, Resulting Trusts, Costs Discretion
Commercial Law Corporations Law Bankruptcy Resulting Trusts Costs Discretion

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Parties

Bachar El-Debel

First Appellant

Fatme El-Debel

Second Appellant

Ronia Ayad

Third Appellant

Fallow Investments Pty Ltd

Appellant

Fabian Kane Micheletto in his capacity as joint and several trustee in bankruptcy of the estate of Bachar El-Debel

First Respondent

Michael Carrafa in his capacity as joint and several trustee in bankruptcy of the estate of Bachar El-Debel

Second Respondent

Procedural Posture

Appeal / Determination of Costs After Partial Success in Related Appeals

Legal Issues

  1. 1 Determination of costs in related appeals where appellants were partially successful
  2. 2 Appropriate exercise of court's discretion to order costs
  3. 3 Consideration of disentitling conduct in rejecting settlement offers

Ratio Decidendi

Where appellants achieve limited or partial success and respondents are, for practical purposes, the successful party, costs should be awarded with adjustments for the degree of success via percentage reductions, unless disentitling conduct substantiates a different order.

Court Disposition

Appellants ordered to pay respondents' costs with percentage adjustment reflecting limited success; costs to be assessed if not agreed.

Orders

  • Appellants in NSD 1038 of 2020 to pay respondents' costs jointly and severally; Mrs El-Debel's liability limited to 80% of costs.
  • Appellant in NSD 1029 of 2020 to pay 95% of respondents' costs; costs to be assessed if not agreed.