Taxation is a proceeding in itself, with its own timetable and its own sanctions. Missing a step in it can cost a party the benefit of the costs order they won.
Order 12 Rules 1 and 10
“Taxing Officer” means the Registrar or a person whose duty it is to tax costs in the Court.
Rule 10: unless the Court or a Judge otherwise orders, bills and fees payable to a party in respect of business transacted by them in the Court or its registries and directed by a judgment or order to be taxed or under these Rules liable to be taxed without express direction shall be taxed, allowed and certified by a taxing officer.
Rule 8: where (a) an order of the Court directs the payment of costs; (b) the proceeding is dismissed with costs; (c) an application is refused with costs; (d) on the discontinuance of a proceeding, where there is no order or agreement to the contrary; or (e) a party is otherwise liable under these Rules to pay the costs of another party — the costs may be taxed without any order directing taxation.
Rules 17, 34 and 35
| Step | Time | Rule |
|---|---|---|
| File the bill | Within 12 months of the final order for costs | r 17 |
| Taxing officer appoints a time and endorses the bill | On filing | r 34(1) |
| Serve the bill on each other party | At least 21 days before the appointment | r 34(2) |
| File and serve a notice of objection | Not less than 7 days before the day appointed | r 35(3) |
| File and serve a statement of response | Not less than 3 days before the day appointed | r 35(5) |
| Certificate of taxation issued | Within 7 days of completion | r 36(1) |
| Apply for judgment if unpaid | After 14 days from service of the certificate | r 36(3) |
| Apply for leave to review the taxation | Within 14 days of issue of the certificate | r 37(2) |
A bill shall not be taxed unless the party entitled to costs files a bill within 12 months of the date of the final order for costs.
A costs order is worth nothing if the bill is not filed in time. Diarise it the day the order is made.
Order 12 Rule 35
A party served with a bill may, by notice, object to any item. The notice shall list each item or part objected to and state concisely and specifically the nature and grounds of objection to each item and the amount which it is contended should be taxed off.
The party served with the objection must prepare a written statement of response to each item or part objected to, stating concisely and specifically, the basis on which it is claimed the item is allowable and the reason the objection cannot be sustained, including references to any authorities relied on.
Subject to the taxing officer’s discretion in exceptional circumstances —
(a) no amount is to be taxed off, nor any ground of objection allowed, unless each amount, ground, item or part, is specifically set out in a notice; and
(b) no amount is to be allowed in respect of an item objected to in a notice if no response to the objection has been made.
So a party who does not object loses the objection, and a party who does not respond loses the item. Oral submissions are permitted only for the purpose of explaining or clarifying an objection or response already in writing.
Rules 19 to 21
Rule 19: the taxing officer shall allow all such costs, charges and expenses as appear to him to have been necessary or proper for the attainment of justice or for maintaining or defending the rights of a party — but, except against the party who incurred them, not costs incurred or increased through over-caution, negligence or misconduct, by payment of special fees to counsel or special charges or expenses to witnesses, or by other unusual expenses, unless approved in writing by the client on a lawyer and own client taxation.
Rule 21: a discretionary fee or allowance is allowed at the taxing officer’s discretion, taking into account the other fees and allowances, the nature and importance of the proceeding, the amount involved, the principle involved, the interest of the parties, the fund, estate or person who will bear the costs, the general conduct and cost of the proceeding, and all other relevant circumstances.
Rule 20: a disbursement must not be allowed if it has not been paid before the bill is delivered — unless the bill expressly states that it was unpaid and sets out unpaid items under a separate heading, and either it is paid before the certificate of taxation is given in discharge of an antecedent liability of the lawyer, or the lawyer provides an unconditional undertaking to the Court to pay it from any costs recovered.
Rules 36 to 39
Within 7 days of completion, the taxing officer issues a sealed certificate of taxation. The party entitled to costs must serve it on the party responsible for payment. If after 14 days from service the costs remain unpaid, the Court or a Judge may, on motion supported by affidavit, direct the entry of judgment for costs in the amount stated in the Certificate.
Rule 39 — every award of costs shall carry interest at up to 8% per annum from 14 days after the date of service of the Certificate of Taxation, irrespective of whether an application for extension of time or review is made. Service must be established by an affidavit of service.
Rule 35(9): if, on the taxation of any costs, one-sixth or more of the amount of the bill is taxed off, the lawyer whose bill it is shall not be allowed the fees to which he would otherwise be entitled for preparing the bill and for attending on the taxation.
An inflated bill therefore costs the lawyer the work of preparing it. See the bill of costs.
Sources
- Supreme Court Rules 2012 — O 12 rr 1, 8, 10, 12, 17–21, 32–39; Fourth Schedule
- Supreme Court Act (Chapter 37) — ss 8, 31
Before relying on anything here, read the current text of the Supreme Court Rules 2012 and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.