Published 14 July 2021
Costs — breach of moral duty — approach to proceedings — residuary beneficiaries — interests of justice — Fry v Fry [2016] NZFLR 713 (HC) — Bones v Wright [2013] NZHC 2093 — Kinney v Pardington [2019] NZHC 2196 — R v R [costs] [2005] NZFLR 461. This hearing was to determine an award of costs. The applicant had been successful in the substantive proceedings in a breach of moral duty claim against her deceased father's (the testator) estate. The interested party was the testator's widow who had taken an active role in the proceedings. Ordinarily costs follow the event and the successful party is entitled to costs; however, the Judge noted that High Court precedent did not support making an award of costs against the estate as a matter of course as this had the effect of impacting the residuary beneficiaries, in this instance the applicant's two children. Consideration must be given to the critical issue in the case, and the factors outlined in R v R (approved by the High Court in Kinney v Pardington). The key issue in the substantive proceedings was the breach of moral duty. The Judge noted that the interested party had filed excessive affidavits which protracted the proceedings and had not acknowledged the breach of moral duty. Taking into account those factors as well as the means of the parties and the actual costs incurred, the Judge concluded that in the overall interests of justice a costs award should not be made and declined to make an award. Costs were to lie where they fell. Judgment Date: 26 January 2021. * * * Note: names have been changed to comply with legal requirements. * * *
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