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WALL v WALL
THE SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
HANDLEY JA
14 February 1994
[1994] NSWCA 336
Handley JA The court is faced with cross-motions from the parties. The
underlying appeal is from the decision of Master Windeyer, as he then was, in
proceedings under the De Facto Relations Act. In those proceedings the present
respondent, Mrs Wall, was substantially successfully and obtained an order that
the appellant's half interest in the former family home be transferred to her. Her
notice of motion filed on 3 December 1993 seeks, in prayer 1, an order for
summary dismissal of the appeal and, in prayer 2, an order that the
supplementary notice of appeal be struck out on, what I would call, procedural
and formal grounds and, prayer 3, that the appeal be expedited and prayer 4, that
the appellant be ordered to provide security for costs.
Mr Wall's cross-motion seeks an order that this Court sit at Lismore in order
to hear the appeal.
As I indicated at the outset of these proceedings, the court does not encourage
applications for summary dismissal or stay on the grounds that the appeal is
vexatious, nor does it encourage procedural applications directed to striking out
some, but not all, of the grounds of appeal. The Court's experience is that
applications of this kind normally take up a substantial amount of court time,
result in substantial costs being incurred, and that, in, each case, the time and the
costs incurred represent a substantial part of the time and costs that would be
incurred in the full hearing of the appeal. Accordingly, the Court's practice for
many years has been to adjourn motions of this kind until the hearing of the
appeal because the court that hears the appeal will be in a better position to deal
with such motions. Accordingly, I order that the notice of motion of 3 December
insofar as it seeks relief claimed in prayers | and 2, be adjourned to the hearing
of the appeal.
The application that the appeal be expedited has been overtaken by events.
This appeal is now 18 in the Court's priority of pending appeals and I am
informed by the Registrar that it will be in the next callover to be held on 6 April.
The order for expedition could not achieve, at this stage, any greater expedition
and, accordingly, prayer 3 will be dismissed.
Prayer 4 seeks an order that the appellant provide security for costs. The
Court's power to order an appellant to provide security for costs is to be found
in RSC Pt51 rll which provides that such an order can be made in the Court's
discretion "in special circumstances". In my opinion the claimant, Mrs Wall has
made out a case of special circumstances. Both parties are in receipt of pensions.
The litigation relates to the former family home which, as a result of Master
Windeyer's orders, became the sole property of Mrs Wall. This is the order, of
course, which is under challenge in the appeal. Mrs Wall has been legally aided
to date and, as a result, there is currently a charge over the home in favour of the
Legal Aid Commission which secures the repayment of some $13,000. On the
evidence Mrs Wall does not have any other assets. She could only pay off this
2 UNREPORTED JUDGMENTS
charge at a very modest rate over many years - out of the surplus (if any) from
her pension after meeting her ordinary living costs. In the real world it is very
doubtful whether there ever will be any such surplus.
If the appeal proceeds and fails the result will be to substantially increase the
amount owed by Mrs Wall to the Legal Aid Commission which, by one means
or another, would ultimately be payable out of what is now her house. The former
share in that house, previously owned by the appellant, will constitute property
recovered by Mrs Wall as a result of these proceedings and, therefore, potentially
subject to the charge in favour of the Commission for their legal aid costs for Mrs
Wall.
The evidence is that Mr Wall is a pensioner and there was evidence before
Master Windeyer that he had no other substantial assets, apart from his pension.
No attempt has been made in this Court to establish that Mr Wall has since
acquired assets or income which will enable him to readily meet any order for
costs of the appeal.
It seems to me, where an unsuccessful appeal would increase an already
substantial charge over the home of the respondent and where, on the evidence,
the appellant is unable, or unlikely to be able, to readily meet those costs, a case
of "special circumstances" has been established. It seems to me it would be
inherently unfair for the appeal to go on and fail and for the result to be that Mrs
Wall loses a further interest in her home.
I, therefore, propose to make an order for security. There is evidence which
would support the view that the costs of proceedings today, plus the costs of the
hearing of the appeal, would amount to approximately $5,000 and, in those
circumstances, I propose to order that security be provided in that amount. This
does not include any amount for the costs of the trial.
I therefore order that the appellant provide security for the costs of the
respondent of this appeal to the satisfaction of the Registrar in the amount of
$5,000 such security to be provided on or before 16 May 1994. In view of the
degree of practical success and failure gained by the claimant in relation to the
notice of motion, I order that the costs of that motion be costs in the appeal.
Mr Wall, in his notice of motion, has sought an order that the Court of Appeal
sit in Lismore for the hearing of this appeal. The Court has power to make such
order but, because of the substantial cost to the public of moving three judges and
associated staff from Sydney to Lismore and return, such an order has not been
made in my experience and would not lightly be made.
The parties do live close to Lismore and refusal of the order means Mr Wall
will once again have to travel to Sydney to argue his case. However, Mrs Wall
would be faced with the task of having her counsel travel from Sydney to
Lismore to argue her case. Balancing the public and private costs and detriments
of a hearing in Sydney with those associated with a hearing in Lismore it seems
that, on balance, the Court should not sit at Lismore. Accordingly, I dismiss Mr
Wall's notice of motion. Since no extra costs have been incurred as a result I
make no order as to costs of that motion.
I order that the appellant, John Andrew Wall, provide security for the costs of
the respondent of the present appeal in the amount of $5,000 to the satisfaction
of the Registrar, such security to be provided on or before 16 May and I order
that, in the meantime, there be a stay of proceedings in the appeal.