Part 67
Costs - Quantification
Contents of this Part
| Scope of this Part | Rule 67.1 |
| Basis of quantification | Rule 67.2 |
| Ways in which costs are to be quantified | Rule 67.3 |
| Fixed costs | Rule 67.4 |
| Prescribed costs | Rule 67.5 |
| Applications to determine value of a claim for the purpose of prescribed costs | Rule 67.6 |
| What is included in prescribed costs | Rule 67.7 |
| Budgeted costs | Rule 67.8 |
| Client's consent to application for budgeted costs | Rule 67.9 |
| What is included in budgeted costs | Rule 67.10 |
| Assessed costs - procedural applications | Rule 67.11 |
| Assessed costs - general | Rule 67.12 |
| Value Added Tax | Rule 67.13 |
| Costs in the Court of Appeal | Rule 67.14 |
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| Appendix A - Fixed Costs Appendix B - Prescribed Costs Appendix C - Prescribed Costs: Percentage to be allowed at various stages of claim
Scope of this Part 67.1 This part deals with the way in which any costs awarded by the court are quantified.
Basis of Quantification 67.2 (1) Where the court has any discretion as to the amount of costs to be allowed to a party or an attorney, the sum to be allowed is the amount that the court deems to be reasonable were the work to be carried out by an attorney of average competence and which appears to the court to be fair both to the person paying and the person receiving such costs. (2) In deciding what would be reasonable the court must take into account all the circumstances, including - (a) any orders that have already been made; and (b) the conduct of the parties before as well as during the proceedings; and (c) the importance of the matter to the parties; and (d) the time reasonably spent on the case; and (e) the degree of responsibility accepted by the attorney; and (f) the care, speed and economy with which the case was prepared; and (g) the novelty, weight and complexity of the case.
Ways in which costs are quantified. 67.3 Costs of proceedings under these Rules are to be quantified as follows - (a) where rule 67.4 applies, in accordance with the provisions of that rule. (b) in all other cases if, having regard to rule 66.6, the court orders a party to pay all or any part of the costs of another party, in one of the following ways - (i) costs determined in accordance with rule 67.4 ("prescribed costs"); or (ii) costs in accordance with a budget approved by the court under rule 67.6 ("budgeted costs"); or (iii) where neither prescribed not budgeted costs are applicable, by assessment in accordance with rules 67.11 and 12.
Fixed Costs 67.4 (1) A party is entitled to the costs set out in column 3 of Appendix A to this Part in the circumstances set out in column 2 of that Appendix. (2) The court may however direct that some other amount of costs be allowed for the work covered by any item in Part 2 of Appendix A (3) If so, the court must assess such costs. (Rule 67.11 and 12 deals with the assessment of costs)
Prescribed Costs 67.5 (1) The general rule is that where rule 67.4 does not apply and a party is entitled to the costs of any proceedings those costs must be determined in accordance with Appendices B and C to this Part and paragraphs (2) - (5) of this rule. (2) In determining such costs the "value" of the claim is to be decided - (a) in the case of a claimant, by the amount agreed or ordered to be paid; or (b) in the case of a defendant - (i) by the amount claimed by the claimant in his claim form; or (ii) if the claim is for damages and the claim form does not specify an amount that is claimed, such sum as may be agreed between the party entitled to, and the client liable to, such costs or if not agreed a sum stipulated by the court as the value of the claim; or (iii) if the claim is not for a monetary sum it is to be treated as a claim for $50,000. (3) The general rule is that the amount of costs to be paid is to be calculated in accordance with the percentage specified in column 2 of Appendix B against the appropriate value. (4) The court may however - (a) award a percentage only of such sum having taken into account the matters set out in rule 66.6(4),(5) and (6); (b) order a party to pay costs - (i) from or to a certain date; or (ii) relating only to a certain distinct part of the proceedings, in which case it must specify the percentage of the fixed costs which is to be paid by the party liable to pay such costs and in so doing may take into account the table set out in Appendix C.
Applications to determine the value of a claim for the purpose of prescribed costs. 67.6 (1) A party may apply to the court at a case management conference - (a) to determine the value to be placed on a case which has no monetary value; or (b) where the likely value is known, to direct that the prescribed costs be calculated on the basis of some higher or lower value. (2) The court may make an order under paragraph (1)(b) if it is satisfied that the costs as calculated in accordance with rule 67.5 are likely to be excessive or substantially inadequate taking into account the nature and circumstances of the particular case. (3) Where an application is made for costs to be prescribed at a higher level rules 67.8(4)(a) and 67.9 apply.
What is included in prescribed costs. 67.7 Prescribed costs include all work that is required to prepare the proceedings for trial including, in particular, the costs involved in instructing any expert, in considering and disclosing any report made by him or arranging his attendance at trial. and for attendance and advocacy at the trial including attendance at any case management conference or pre-trial review but exclude - (a) the making or opposing of any application except at a case management conference or pre-trial review; (b) expert's fees for preparing a report and attending any conference, hearing or trial; and (c) costs incurred in enforcing any order (which are generally fixed in accordance with rule 67.4 but may, in certain cases, be assessed in accordance with rule 67.12).
Budgeted costs 67.8 (1) A party may however apply to the court to set a costs budget for the proceedings. (2) An application for such a costs budget must be made at or before the first case management conference. (3) The application may be made by either or both parties but an order setting a costs budget may not be made by consent. (4) An application for a costs budget must be accompanied by - (a) a written consent from the client in accordance with rule 67.9; (b) a statement of the amount that the party seeking the order wishes to be set as the costs budget; (c) a statement showing how such budget has been calculated and setting out in particular - (i) the hourly rate charged by the attorney (or other basis of charging); (ii) a breakdown of the costs incurred to date; (iii) the fees for advocacy, advising or settling any document that are anticipated to be paid to any attorney other than the attorney on record; (iv) the disbursements other than expert witness fees that are included in the budget; (v) the anticipated amount of any expert fees and whether or not such fees are included in the budget; and (vi) a statement of the number of hours of preparation time (including attendances upon the party, any witnesses and on any other parties to the proceedings) that the attorney for the party making the application has already spent and anticipates will be required to bring the proceedings to trial; and (vii) what procedural steps or applications are or are not included in the budget.
Client's consent to application for a costs budget 67.9 (1) The court may not make an order for budget costs unless (a) the lay party seeking the order is present, unless for some exceptional reasons this is impracticable, when the application is made; and (b) the court satisfies itself that each party fully understands the consequences of the order that is being sought as to - (i) the lay party's liability for costs to his own attorney whether he obtains an order for costs against any other party or not; and (ii) his liability to pay costs in the budgeted sum to the other party if that party obtains an order for costs against him; and (iii) what his liability might be under paragraphs (i) and (ii) if rule 67.5 applied; and (c) there has been filed a document recording the express consent of the lay party to the application and to any order made as a consequence of the application; and (d) such consent must be in a separate document which - (i) is signed by the lay party; and (ii) deals only with the question of budgeted costs; and (iii) states the attorney's estimate of what the prescribed costs appropriate to the proceedings would be; and (iv) gives an estimate of the total costs of the proceedings as between attorney and client; and (v) sets out the basis of that estimate including the amount of any hourly charge. (2) The written consent of the client must not be disclosed to the other party. (3) This rule also applies to any other lay party who consents to or does not oppose an order for a costs budget.
What is included in a costs budget. 67.10 Unless the costs budget approved by the court specifies otherwise rule 67.7 applies to budgeted costs as it does to fixed costs.
Assessed costs of procedural applications 67.11 (1) On determining any application except at a case management conference, pre-trial review or the trial, the court must (a) decide which party, if any, should pay the costs of that application; (b) assess the amount of such costs; and (c) direct when such costs are to be paid. (2) In deciding what party, if any, should pay the costs of the application the general rule is that the unsuccessful party must pay the costs of the successful party. (3) The court must however take account of all the circumstances including the factors set out in rule 66.6(5) but where the application is - (a) one that could reasonably have been made at a case management conference or pre-trial review; or (b) an application to extend the time specified for doing any act under these Rules or an order or direction of the court; or (c) an application to amend a statement of case; or (d) an application for relief under rule 26.7 the court must order the applicant to pay the costs of the respondent unless there are special circumstances. (4) In assessing the amount of costs to be paid by any party the court must take into account any representations as to the time that was reasonably spent in making the application and preparing for and attending the hearing and must allow such sum as it considers fair and reasonable.
Assessment of Costs - general 67.12 (1) This rule applies where costs fall to be assessed in relation to any matter or proceedings, or part of a matter or proceedings other than a procedural application. (2) Where the assessment relates to part of court proceedings it must be carried out by the judge or master hearing the proceedings. (3) Where the assessment does not fall to be carried out at the hearing of any proceedings then the person entitled to the costs must apply to a master for directions as to how the assessment is to be carried out. (4) The application must be accompanied by a bill or other document showing the sum in which the court is being asked to assess the costs and how such sum was calculated. (5) On hearing any such application the master must either - (a) assess the costs if there is sufficient material available for him to do so; or (b) fix a date time and place for the assessment to take place. (6) The master may direct that the party against whom the bill is assessed pay the costs of the party whose bill is being assessed and, if so, must assess such costs and add them to the costs ordered to be paid.
Value Added Tax 67.13 A party who is not himself registered for value added tax may add the appropriate amount of value added tax to the amount of any prescribed, assessed or budgeted costs awarded to him.
Costs of Proceedings in the Court of Appeal 67.14 Unless the Court of Appeal on an application made in accordance with rules 67.8 and 67.9 makes an order for budgeted costs, the costs of any appeal must be determined in accordance with rules 67.5, 67.6 and 67.7 and Appendix B but the costs must be determined at two thirds of the amount that would otherwise be allowed under Appendix B.
Appendix A Part 1 This part of the appendix sets out the fixed costs applicable to a claim for a specified sum of money (a) Table 1 - which a defendant who does not defend must pay to the claimant , in addition to the amount claimed and interest and the court fees paid by the claimant, in order to avoid judgment being entered against him under Part 12. These sums are to be entered on the claim form. The table also deals with claims for possession of land or delivery of goods and an application for an attachment of debts order (b) Table 2 - which a claimant is entitled to include as costs in any default judgment under Part 12 in addition to the costs set out in Table 1 ---------------------------
Scale of Fixed Costs Table 1 1. This table shows the amounts to be entered on a claim form or provisional attachment of debts order in respect of attorney's charges - (a) in an action for payment of a specified sum of money; or (b) in attachment of debt proceedings; or (c) in an action for the recovery of land. 2 .In addition to the fixed costs the appropriate court fee is to be allowed. (1) Claim exceeding $15,000 but not exceeding $25,000 $500 or a claim for recovery of land or goods. (2) Claim exceeding $ 25,000 but not exceeding $100,000 $700 (3) Claim exceeding $100,000 but not exceeding $500,000 $850 (4) Claim exceeding $500,000 $1000
Table 2 This table shows additional costs which may be added on the entry of a default judgment under Part 12 or a judgment on admissions under Part 14 for a specified sum of money. (1) Basic costs $350 (2) Where there us more than one defendant, in respect of each additional defendant served against whom judgment is entered. $50 (3) Where an order is made under rule 5.12 (specified $500 method of service), for each defendant served (3) Where an order is made under Part 7, for service out of the jurisdiction (to cover the obtaining of an order under Part 7 and service) $500 (4) Where judgment is entered on an admission and the claimant accepts the defendant's proposals as to method of payment under rule 14.9 $350 (6) Where judgment is entered on an admission and the time and rate of payment are not agreed under rule 14.10 $500 -----------------
Part 2
Miscellaneous enforcement proceedings The following table shows the amount to be allowed in respect of attorney's charges in the circumstances set out. The appropriate court fee is to be added. (1) For filing a request for the issue of a writ of execution - $150 (2) For each attendance at a hearing of - (i) an oral examination; (i) an application to suspend a writ of execution; or (ii) an application for time to pay where the debt is admitted $300 (3) For the costs of the judgment creditor where allowed in proceedings for an attachment of debts order or an application for payment out of money in court under rule 51.15 - (i) where the amount recovered is less than $1000 one half of the amount recovered (ii) where the amount recovered is not less than $1000 $500 (4) For the costs of the judgment creditor where allowed in an application for a charging order $500 -----------------------------------
Appendix B Scale of prescribed costs: Value of Claim up to $30,000 30% $30,000 to $50,000 25% $50,000 to $100,000 20% $100,000 to $250,000 15% $250,000 to $500,000 10% $500,000 to $1m 7.5% $1m to $2m 5% $2m to $5m 2.5% $5m to $10m 1% over $10m .5%
Appendix C
Prescribed Costs: Percentage to be allowed at various stages of claim Table showing the percentage of the prescribed costs to be allowed under Appendix B where an action concludes prior to trial. Stage Percentage Up to and including service of Defence 45% After defence and up to and including the case management conference 55% From case management conference and up to and including listing questionnaire 70% From listing questionnaire and up to and including pre-trial review (if any) 75% To trial 100%. Up to default judgment and including assessment of damages 60% |