The court addressed costs following a successful summary judgment motion by the respondents, Stephen and William Elias, against the applicant, Emma Trefler, regarding the validity of a $950,000 mortgage.
Stephen Elias sought full or substantial indemnity costs for both the summary judgment motion and an earlier emergency motion.
William Elias sought substantial indemnity costs for the summary judgment motion.
The court found Stephen's offer to settle did not comply with Family Law Rule 18(14) due to demanding full indemnity costs as a condition of acceptance and lacking a true element of compromise, and William's offer was deficient for not specifying the scale of costs.
Crucially, the court exercised its discretion under Rule 24(4) of the Family Law Rules to deprive Stephen of costs due to his unreasonable and abusive behaviour, including "hurtful, abusive and hateful" anti-Semitic text messages to the applicant, which created a toxic environment and prevented settlement.
Despite William not exhibiting the same behaviour, the court found that due to the identity of interest with Stephen and the circumstances necessitating William's involvement (Stephen's prior agreement to provide proof of loan and William's inability to fully account for funds), ordering the applicant to pay William's costs would defeat the purpose of Rule 24(4).
Consequently, all parties were ordered to bear their own costs.