The Director of the Family Responsibility Office (FRO) appealed a costs award made against it for failing to pay out a surplus of funds accumulated under a family court support order.
The motion judge had found FRO's retention of the funds unreasonable and contrary to its statutory duties.
The Divisional Court allowed the appeal, holding that FRO was not a party to the proceedings and therefore could not be subject to a costs award under section 131 of the Courts of Justice Act.
Furthermore, the court found that FRO's policy of not paying out surplus funds without a court order was not unreasonable.