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Fathers actual costs of $252,000 result in a costs order of just $10,000: The Costly Lesson in Proportional Justice

How a father’s six-figure legal bill turned into a cautionary tale about fairness, restraint, and the limits of costs recovery in family law.

In Langley & Mirza (No 2) [2025], Justice Austin delivered a sharp reality check for litigants pursuing large-scale cost recoveries in family law. Despite the father spending $252,235.91 in actual legal costs, he walked away with only $10,000 in costs on appeal — a stark illustration that family law costs are governed by proportionality, fairness, and reasonableness, not the magnitude of one’s legal bills.

The case demonstrates that even where a party “wins,” discretion and equity control the outcome — not accounting spreadsheets or punitive motives.

Facts and Issues

After a bitterly contested property trial, the father sought to recoup his substantial legal expenditure, applying for a costs order of $252,235.91 (actual) or alternatively $206,262.38 (party/party).

The mother opposed, arguing both sides had contributed to the protracted dispute. The trial judge agreed, fixing costs at $77,080.68, representing half of each party’s combined outlays — a rough, equitable division.

The mother appealed on five grounds:

  1. The primary judge allegedly used indemnity rates despite rejecting indemnity costs.
  2. She was denied procedural fairness, not being consulted on the numerical calculation.
  3. Failure to consider all relevant Family Law Act s 117(2A) factors.
  4. Overlooked one of her earlier Costs Notices (2021).
  5. Inadequate reasons for fixing, rather than assessing, costs.

The key issue became whether the trial judge’s approach miscarried in law or principle — and whether the outcome was manifestly unfair.

Application of Law to the Facts

Justice Austin reaffirmed the well-established restraint on appellate interference: a costs discretion is “not to be lightly disturbed” unless there is error of principle or procedural unfairness.

  • The judge found that no indemnity order was made — the trial judge had merely used each party’s actual legal spend as a “common baseline” for fairness, avoiding distortion that would occur if only one side’s lower party/party costs were used.
  • Procedural fairness was not denied; both parties made extensive written submissions, and the Court was not obliged to reopen for discussion of raw figures.
  • The s 117(2A) factors were expressly cited; the judge was not required to list each exhaustively.
  • The alleged overlooked Costs Notice was never in evidence, and therefore irrelevant.
  • Fixing costs, rather than ordering a protracted assessment, was consistent with the overriding purpose of efficiency under r 1.04 of the FCFCOA (Family Law) Rules 2021.

Analysis of the Judgment and Reasoning

Justice Austin dismissed the mother’s appeal entirely — but notably, while the father succeeded, his reward was symbolic rather than substantial.

His Honour awarded the father just $10,000 in appeal costs, expressly noting the appeal was “short and straightforward” and did not justify significant reimbursement.

The decision reinforced three principles:

  1. Winning doesn’t guarantee full reimbursement.
  2. Even after prevailing on all issues, the father’s recovery — less than 4% of his total legal spend — underscored that family law is about fairness, not restitution.
  3. Fairness outranks financial precision.
  4. The trial judge’s “half-the-combined-costs” approach was upheld as equitable and proportionate.
  5. Efficiency trumps escalation.
  6. Justice Austin commended the pragmatic choice to fix costs to avoid yet another dispute, preserving judicial resources and discouraging excessive litigation.

Take-Home Lessons

💡 1. Spending more doesn’t mean you’ll recover more.

Family law’s discretionary nature means cost orders are guided by fairness, not the scale of expenditure.

💡 2. Costs appeals are a dead end unless there’s clear error.

Courts protect discretionary judgments from re-litigation.

💡 3. Efficiency and proportionality rule the day.

A $252,000 legal saga yielded a $10,000 outcome — a reminder that family law punishes overreach and rewards reasonableness.

💡 4. Fixing costs protects both parties from endless disputes.

The court’s focus is finality, not financial revenge.

Cited Authorities

  • Langley & Mirza (No 2) [2025] FedCFamC1A 226
  • Minister for Immigration v SZGUR (2011) 241 CLR 594
  • SZBEL v MIMIA (2006) 228 CLR 152
  • Family Law Act 1975 (Cth) s 117(2A)
  • FCFCOA (Family Law) Rules 2021 (Cth) r 1.04

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