IN THE FEDERAL COURT OF AUSTRALIA QUEENSLAND DISTRICT REGISTRY QX 154 of 1996 RE: ALAN BRADLEY JORGENSEN EX PARTE: MADGWICKS Applicant AND: ALAN BRADLEY JORGENSEN Respondent JUDGE: SPENDER J DATE OF ORDER: 10 JUNE 1998 WHERE MADE: BRISBANE THE COURT ORDERS THAT: 1. There be no order as to costs against Custom Credit Corporation Ltd. 2. The applicant pay two-thirds of the costs of the respondent, including reserved costs, to be taxed if not agreed. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. IN THE FEDERAL COURT OF AUSTRALIA QUEENSLAND DISTRICT REGISTRY QX 154 of 1996 rE: ALAN BRADLEY JORGENSEN ex parte: MADGWICKS Applicant AND: ALAN BRADLEY JORGENSEN Respondent JUDGE: SPENDER J DATE: 10 JUNE 1998 PLACE: BRISBANE REASONS FOR JUDGMENT On 29 April 1998 I dismissed an application by Madgwicks and Custom Credit Corporation Ltd to have a composition set aside. Custom Credit Corporation Ltd was joined as a second applicant on the second day of the hearing in order to meet a challenge to the standing of Madgwicks as a creditor to bring the application. On 29 April, I indicated my provisional view that having regard to a number of matters, particularly the failure by Mr Jorgensen on the question of standing, I proposed to order Madgwicks pay half of Mr Jorgensen's costs. I invited written submissions on the question of costs, which have been received. I have had regard to those submissions. I do not accept that had Madgwicks been aware earlier of affidavit material from a number of creditors, they might not have persisted in their application. The ordinary rule is that costs follow the event, although the court has a discretion to make an alternative order. I think that the question of the debtor/creditor relationship between the respondent and Madgwicks was a significant part of the application, and Mr Jorgensen's failure in that regard ought to be recognised by making other than the ordinary order. On reflection, however, my initial view of a 50 percent reduction is too generous to the applicant Madgwicks. I make no order as to costs against Custom Credit, and order that Madgwicks pay two-thirds of the costs of the respondent, including reserved costs, those costs to be taxed if not agreed. I certify that this and the preceding page are a true copy of the Reasons for Judgment herein of the Honourable Justice Spender. Associate: Dated: 10 June 1998 Counsel for the Applicant: Mr M Gynther Solicitor for the Applicant: Madgwicks Counsel for the Respondent: Mr P P McQuade Solicitor for the Respondent: McHenry & Company Written submissions on costs By 13 May 1998 Date of Judgment on costs: 10 June 1998