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What Is a Bill of Costs?

The itemised document a lawyer prepares for taxation. It must contain particulars of the work done, the disbursements made and the costs claimed — with professional charges in a separate column from disbursements, every column cast before the bill is left for taxation, and the lawyer’s name and business address endorsed on it.

The National Court practice series, no. 238 · Costs · 5 min read

Rule 1 of Order 22 of the National Court Rules 1983 defines it simply: “bill” means bill of costs. Rule 49 says what it must contain.

Rule 49(1)

Three classes of particulars

A bill shall contain particulars of —

(a) the work done by the lawyer, his servants and agents; and

(b) the disbursements made; and

(c) the costs claimed for the work done.

Particulars, not a total

The Rule requires particulars of each. A bill that states a lump sum is not a bill within Rule 49, and cannot be taxed — the taxing officer has to be able to allow or disallow item by item under Rule 59(4).

Paragraph (a) covers work done by the lawyer, his servants and agents, so agency work done elsewhere is included.

Rule 49(2) and (3)

Two formal requirements

(2) In every bill the professional charges shall be entered in a separate column from the disbursements, and every column shall be cast before the bill is left for taxation.

(3) Where it is a clerk who does any work included in a bill and that fact is relevant to the amount of costs allowable for the work, the name and position of the clerk shall be stated in the bill.

“Cast” means added up

Every column must be totalled before the bill is left for taxation. A bill delivered with columns not cast is not ready, and the delay is the lawyer’s own.

That matters because of Rule 56(1): a solicitor who fails to file his bill for taxation within the time fixed or otherwise delays or impedes the taxation shall not, unless the taxing officer otherwise orders, be allowed the fees … for preparing his bill of costs and for attending the taxation.

Why the clerk must be named

Sub-rule (3) applies where the identity of the person doing the work is relevant to the amount of costs allowable. Where a scale distinguishes between work done by a lawyer and by a clerk, the taxing officer must be able to see which was which.

Rule 49(4) and (5)

They may be included, but must be flagged

Where a liability to make a disbursement, or a fee to counsel, has been incurred and would properly be included in a bill if paid —

(a) it may be included in the bill notwithstanding that it has not been paid;

(b) the bill shall state that the disbursement or fee has not been paid; and

(c) subject to sub-rule (5), on taxation, the disbursement or fee shall not be allowed unless paid before the taxation is completed.

Pay counsel before the taxation concludes

Paragraph (c) is a trap. An unpaid counsel’s fee may be listed, but it will not be allowed unless it is actually paid before the taxation is completed.

There is one exception, in sub-rule (5): in proceedings under the Matrimonial Causes Act, on taxation of a bill of a female petitioner or respondent, paragraph (c) does not apply where her lawyer gives a written understanding to the Registrar that all or any fees or disbursements in that bill will be paid by the lawyer out of the first money received by or on behalf of his client in payment of the costs allowed.

Rule 49(7)

A bill must be endorsed with —

(a) the name or firm and business address of the lawyer whose bill it is; and

(b) if the lawyer is the agent of another, with the name or firm and business address of that other lawyer.

And amendment is possible

Rule 49(6): the Court or the taxing officer may give leave, on terms, for the amendment of a bill.

Rule 50: a bill need not be served on a lawyer whose bill it is. Otherwise, Rule 46(4) requires a copy of the application — to which the bill and a copy are annexed — to be served on every other interested party.

A checklist

Nine points
  1. Identify the basis of taxation from the order. Party and party is the default under Rule 24(1); anything more generous must have been ordered.
  2. Work through the file chronologically, itemising the work done by the lawyer, servants and agents.
  3. Separate the columns — professional charges in one, disbursements in another.
  4. Name the clerk where that is relevant to the amount allowable.
  5. Mark unpaid disbursements and counsel’s fees as unpaid, and arrange to pay them before the taxation concludes.
  6. Apply the scale in Table 1 of Schedule 2 under Rule 36.
  7. Cast every column.
  8. Endorse the bill with the firm name and business address, and that of any principal for whom you act as agent.
  9. File the application in writing under Rule 46 with the bill and a copy annexed, the order if any, and serve every interested party.
Do not overstate it

Rule 56(2): if one-sixth or more of the amount of the bill … is taxed off, the solicitor shall not be allowed the fees … for preparing the bill and for attending the taxation — with no discretion to relieve.

A bill padded by more than a sixth therefore costs the lawyer the cost of preparing and arguing it. Claim what is properly allowable on the basis ordered, and no more.

What follows

The Registrar fixes a time and place under Rule 48, the bill is taxed and settled, and a certificate issues under Rule 59. See taxation, and on challenging items, objections and review.

Sources

Rule 49(5) refers to the Matrimonial Causes Act 1963; the consolidated Act is at the link above.

Check the section yourself

Before relying on anything here, read the current text of the National Court Rules 1983 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.

Disclaimer: This article provides general information about Papua New Guinea law and does not constitute legal advice. Laws may change, and their application depends on individual circumstances. You should obtain professional legal advice for your specific situation. Read the full disclaimer.