Event and Time
Event Description
This case involves a cost application made by the Trustee in Bankruptcy, Mr. Shellback, against the respondent de facto husband, Mr. Gazi, regarding the costs associated with an interlocutory application. The application escalated due to Mr. Gazi seeking an injunction to prevent the distribution of funds held by the trustee from the sale of the former matrimonial home amidst ongoing bankruptcy proceedings involving his de facto partner, Ms. Strobel.
Application and Claims
- By the Applicant (Mr. Shellback):
- Requested costs incurred in responding to an interlocutory application by Mr. Gazi, either on an indemnity basis or, alternatively, a party/party basis.
- By the Respondent (Mr. Gazi):
- Opposed the cost application, claiming his application was not entirely unsuccessful. - Asserted his financial incapacity to cover any potential costs, and highlighted his attempts at settlement.
Judicial Decisions
- The Court ordered Mr. Gazi to pay the trustee’s costs on a party/party basis commencing from 15 July 2020. This decision was determined after evaluating the merits of the interlocutory application and the conduct of the parties during the proceedings.
Dispute Points and Legal Basis
Dispute Points
- Trustee's Argument:
- Claims that Mr. Gazi's application was "doomed to fail." - Notes Mr. Gazi had prior legal advice indicating the weak basis of his claim. - Contends that costs were incurred due to delays and lack of merit in Gazi's assertions regarding the property pool.
- Respondent's Argument:
- Asserts that he should not bear costs as his application was not wholly unsuccessful concerning the base debt owed, as stated in his injunction. - Claims financial incapacity and inability to pay costs. - Indicates he made earlier settlement offers that were ignored.