It is common to hear, but I never say this.
People say this when they are trying to give a balanced description of a person or a situation.
For example,
"In all fairness, although he is an amateur, even a professional would have failed in that situation."
"In all fairness, the chef's recipes are popular, although I don't life that type of food myself."
"In all fairness, I should have warned you that I was not going to be available, but you still should have been prepared."
It is something like admitting a good point about the other side.
Good luck!