Taxation

 

The LPA gives you and the lawyer the option to apply to the Court for a formal assessment or ‘taxation’ of the bill of costs.

 

However, either you or your lawyer must obtain an order for taxation within one year from the delivery of the bill. However, in a case where a lawyer and his client consent to taxation of the bill, the Registrar may proceed to tax the bill notwithstanding that there is no order.

 

Your lawyer can proceed to tax his own bill of costs if you dispute the quantum of the bill. Your lawyer can only present the bill for taxation one month from the delivery of the bill. Consequently, your lawyer can proceed to sue you on the taxed costs, if you still refuse to pay.

 

After one year from the delivery of the bill, no order shall be made for taxation, except under special circumstances.

 

Taxation Procedure

 

There are two types of basis for taxation of legal costs, namely taxation on a standard basis and taxation on an indemnity basis.

 

‘Party and party costs’ are usually taxed on a standard basis. ‘Standard basis’ means that the party claiming costs has to show that any particular item was reasonably incurred and therefore allowed.

 

The legal costs you are liable to pay to your own lawyer are ‘solicitor and client costs’. For contentious matters, ‘solicitor and client costs’ are taxed on an indemnity basis. ‘Indemnity basis’ means that the party paying costs has to show that any particular item was unreasonably incurred and therefore disallowed.

 

If you are unhappy with the legal costs you have to pay the other party’s lawyers (in the situation that you have lost your case and have been asked to pay for the other party’s costs), you should consult your lawyer as to the taxation procedure of the ‘party and party’ costs.

 

If you succeed in your contentious matter, you can expect to recover your ‘party and costs’ which will cover part of your ‘solicitor and client costs’.

 

The procedure of taxation (of the ‘solicitor and client costs’) if you are dissatisfied with your lawyer’s charges is as follows:

 

• Filing and service of the bill of costs The bill of costs should be filed and subsequently served on your lawyer (or on you if your lawyer initiated the taxation where you disputed the quantum of the bill). You should note that, for the purposes of taxation, your lawyer is allowed to file a bill of costs for a greater amount than the original bill he sent to you. There is a specific format as to the bill of costs to be submitted for taxation.

• Objections: P & Q

   

  You may object to the bill of costs or portions of it on principle or quantum or both principle and quantum.

   

  If you object to the bill of costs or portions of it on principle, you are saying that the lawyer is not entitled to the costs at all.

   

  If you object to the quantum, you are saying that the lawyer is entitled to the costs but you disagree to the sum he is entitled to.

   

  All objections are to be filed and served in a notice of dispute (in the proper form) seven days before the date of the taxation hearing.

• The taxation hearing

   

  On the day of the taxation hearing, a list of all the bills of costs fixed for hearing will be posted at the notice board of the Registry.

   

  The Registrar may, in the discharge of his functions with respect to the taxation of costs:

  • take an account of any dealings in money made in connection with the payment of the cost being taxed, if the court so directs;

  • require any party represented jointly with any party in any proceedings before him to be separately represented;

  • examine any witness in those proceedings; or

  • direct the production of any document which may be relevant in connection with those proceedings.

• If you fail to turn up for the Taxation hearing If you fail to turn up for the taxation hearing within a reasonable time after the time appointed for the taxation, the Registrar, if satisfied that you had notice of the date and time appointed may proceed with the taxation.

• Review of Registrar’s decision by Judge

   

  If you are dissatisfied with the Registrar’s review, you may within 14 days, apply to a Judge in Chambers for an order to review the taxation. The Judge may either increase or decrease the taxed costs. Alternatively, the Judge may dismiss the review.

   

  Further appeals from the decision of the Judge are also available. You are advised to seek independent legal advice before requesting for taxation.