Justice Paul Brereton yesterday warned the parties - each accusing the other of no longer being board members of the KidzWish Foundation - that he would not order the charity to pay costs regardless of the result.

"I wouldn't want anyone to think if they are successful or not successful they are going to get their costs out of the charity," he said.

"This is a dispute between fighting factions and they should be personally responsible for the costs.

"It is just a tragedy this emotion and effort has been used up on this litigation."

The KidzWish Foundation was set up in 2004 to put on an annual Christmas party for about 2500 disadvantaged children.

The board of directors has taken a dispute over who is rightfully a member of the board to the Supreme Court after it split into two factions, each claiming the other had been expelled.

Founder Christine Beaven instigated the action to stop defendants Stephen O'Brien, Wayne Larkin and Barry Sandry from representing the charity.

In their affidavits tendered in court, Mr O'Brien said the charity owed him $42,995 and Mr Larkin's company Visual Design Group was owed $18,337.

The three defendants were unrepresented and the hearing opened with Mr Larkin cross-examining Mrs Beaven.

He asked her to read out her handwritten resignation from the KidzWish board dated May 28, 2007.

"I hereby tender my resignation as secretary and CEO," she said. "I have great concerns this board is not following procedures set down by the office of charities."

When asked repeatedly if it was her letter of resignation, Mrs Beaven admitted that she wrote it but said she thought it had been destroyed.

Later, while being cross-examined by Mr Sandry, Mrs Beaven said she had stormed out of meetings and verbally resigned prior to May 2007.

Mrs Beaven often had to be asked questions repeatedly by the defendants or said she could not remember events until Justice Brereton stepped in and asked the same question.

At one point, Justice Brereton asked her why it took 10 attempts to get a simple answer from her.

Mr Larkin had been asking Mrs Beaven how she had been using the foundation's funds since October, when a court order had prevented her from spending any charity money without first informing the defendants.

During her evidence, Mrs Beaven accused Mr Larkin of doubling the cost of his labour for design work done for the charity from $75 an hour to $150 an hour.

The hearing continues today.