Hypotheticals by Manny Wood Published in the Coffs Coast Advocate on 13 April 2019.
Jenny makes a successful claim against the estate of her late grandmother.
She is awarded the sum $45,000 on the basis that she was financially dependent upon her grandmother and that her grandmother had made no provision for Jenny in her will.
The court orders that the $45,000 sum is to be borne by Jenny’s mother’s share of the estate.
Unfortunately, a further dispute arises between the executor of the estate and Jenny in relation to the payment of legal costs.
It is normal for a successful claimant to have their legal costs paid out of the estate.
However, if an executor has made an offer to a claimant, that is not accepted and the offer is more than what is ultimately awarded, the court may make alternative orders in relation to the payment of legal costs.
The parties go back to the Supreme Court to argue this costs issue.
The court notes that before the hearing, Jenny was offered the sum of $50,000 and that the estate also offered to pay her legal costs.
The court also notes that Jenny did not accept this offer and instead proceeded to a hearing in the expectation that she would receive more.
The hearing took three days to complete and Jenny ultimately received less then what she had been offered.
The executor argues that the estate should not pay Jenny’s legal costs and further that Jenny should be ordered to pay the estate’s legal costs that were incurred after the date the offer was made.
The court ultimately considers that it is “fair and just” that Jenny pays her own legal costs but she is not ordered to pay any of the estate’s legal costs.
The net result is that although her claim was successful, Jenny receives nothing after her legal costs are taken into account.
If would like Manny to address a particular legal issue, send your request to manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.
