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High Court of Fiji |
IN THE HIGH COURT OF FIJI
WESTERN DIVISION AT LAUTOKA
CIVIL JURISDICTION
CIVIL ACTION No. HBC 225/2007
BETWEEN : FOLLIES INTERNATIONAL LIMITED a limited liability company having its registered office at c/o BDO Accountants, 8th Floor, Dominion House, Thompson St. Suva
PLAINTIFF
AND : HONEYMOON ISLAND (FIJI) LIMITED a limited liability company having its registered office c/o Young & Associates, Solicitors, 2 Saku Lane, Lautoka
FIRST DEFENDANT
AND : OCEANIC SCHOONER COMPANY (FIJI) LIMITED a limited liability company having its registered office at Cromptons, Solicitors, Office 10, Queensland Insurance, Victoria Parade, Suva
SECOND DEFENDANT
AND : iTAUKEI LAND TRUST BOARD a body corporate established under the iTaukei Lands Trust Act 1940
INTERESTED PARTY
CIVIL ACTION No. HBC 257/2007
BETWEEN : HONEYMOON ISLAND (FIJI) LIMITED (see above)
PLAINTIFF
AND : iTAUKEI LAND TRUST BOARD (see above)
DEFENDANT
APPEARANCES : Mr CB Young for Honeymoon Island (Fiji) Ltd (first defendant in HBC 225/07 and plaintiff in HBC 257/07)
Ms E Raitamata & Mr Cati for the iTaukei Land Trust Board (interested party in HBC 225/07 and defendant in HBC 257/07)
DATE OF HEARING : 14 October, 2020
DATE OF JUDGMENT : 26 March, 2021
DECISION
The law
Costs 351
Part I - PRELIMINARY
r.1 Interpretation 359
r.2 Application 361
Part II - ENTITLEMENT TO COSTS
r.3 General principles 361
r.4 Cases where no order for costs is to be made 367
r.5 Cases where order for costs deemed to have been made 367
r.6 Cases where costs do not follow the event 369
r.7 Special circumstances in which costs shall not or may not be taxed 370
r.8 Stage of proceedings at which costs to be taxed 372
r.9 Matters to be taken into account in exercising discretion 373
r.10 Misconduct or neglect in the conduct of any proceedings 373
r.11 Personal liability of legal representative for costs 373
Part III – TAXATION AND ASSESSMENT OF COSTS
r.12 Basis of taxation 376
r.13 Standard Costs 378
r.14 Costs payable to a trustee or personal representative out of any fund 379
r.15 Costs payable to a solicitor by his own client 379
r.16 Costs payable to a solicitor where money claimed
by or on behalf of a minor or a patient 383
r.17 Provisions for ascertaining costs on a taxation 384
r.18 Litigants in person 384
Part IV – POWERS OF TAXING OFFICERS
r.19 Who may tax costs 385
r.20 Supplementary powers of taxing officers 386
r.21 Extensions of time 387
r.22 Certificates 387
r.23 Power of taxing officer where party liable to be paid and to pay costs 388
r.24 Taxation of bill of costs comprised in an account 388
r.25 Taxing officer to fix certain fees payable to conveyancing counsel 388
r.26 Powers of taxing officers on taxation of costs out of a fund 389
r.27 Powers of taxing officers in relation to costs of taxation proceedings 390
r.28 Powers of taxing officer in relation to misconduct, neglect etc. 390
Part V – PROCEDURE ON TAXATION
r.29 Commencement of proceedings 392
r.30 Subsequent procedure 395
r.31 Provisional taxation 396
r.32 Short and urgent taxations 397
Part VI – REVIEW OF TAXATION
r.33 Application to taxing officer for review 397
r.34 Review by taxing officer 398
r.35 Review by a judge 399
r.36 Requisite Document for Purposes of Rule 29 399
r.37 Amount of Indemnity costs 400
Rules relevant to the present situation are as follows (I have omitted those rules, or parts of the rules, including definitions, that do not appear to apply here):
Interpretation (O.62, r.1)
1(1) Except where it is otherwise expressly provided, or the context otherwise requires, the following provisions of this rule shall apply for the interpretation of this Order.
(2) ...
“contentious business” means business done as a legal practitioner in or for the purposes of proceedings begun before a court, tribunal or arbitrator;
“non-contentious business” means any business done as a legal practitioner, other than contentious business;
“legal representative” means a legal practitioner or a barrister or a solicitor;
“party”, in relation to a cause or matter, includes a party who is treated as being a party to that cause or matter by virtue of Order 1, rule 2;
...
“registrar” means the registrar of the High Court; 360 High Court Rules Cap 13A
“the standard basis” and “the indemnity basis” have the meanings assigned to them by rule 12(1) and (2) respectively;
“solicitor” includes a legal practitioner admitted to practise in Fiji;
“taxed costs” means costs taxed in accordance with this Order;
“taxing officer” means the Registrar or Master or any officer for the time being authorised by the Chief Justice to act as a taxing officer.
(3) ...
(4) References to costs shall be construed as including references to fees, charges, disbursements, expenses and remuneration and, in relation to proceedings (including taxation proceedings), also include references to costs of or incidental to those proceedings.
The general principles are set out in Rule 3 of the Order, as follows:
General principles (O.62, r.3)
3(1) This rule shall have effect subject only to the following provisions of this Order.
(2) No party to any proceedings shall be entitled to recover any of the costs of those proceedings from any other party to those proceedings except under an order of the Court.
(3) If the Court in the exercise of its discretion sees fit to make any order as to the costs of any proceedings, the Court shall order the costs to follow the event, except when it appears to the Court that in the circumstances of the case some other order should be made as to the whole or any part of the costs.
(4) The amount of costs which any party shall be entitled to recover is the amount allowed after taxation on the standard basis where-
(a) an order is made that the costs of one party to proceedings be paid by another party to those proceedings, or
(b) an order is made for the payment of costs out of any fund, or
(c) no order is required, unless it appears to the Court to be appropriate to order costs to be taxed on the indemnity basis.
(6) Subject to rule 8, a term mentioned in the first column of the table below, when used in an order for costs, shall have the effect indicated in the second column of that table.
Term Effect
“Costs” (a) Where this order is made in interlocutory proceedings, the party in whose favour it is made shall be entitled to the costs in respect of those proceedings whatever the outcome of the cause or matter in which the proceedings arise; and
(b) where this order is made at the conclusion of a cause or matter, the party in whose favour it is made shall be entitled to have the costs taxed forthwith;
“Costs reserved” ...
“Costs in any event” ...
“Costs here and below” ...
“Costs in the cause” The party in whose favour an order for costs is made at the conclusion of the cause or matter in which the proceedings arise shall be entitled to the costs of the proceedings in respect of which such an order is made;
“Plaintiff’s costs in the cause” or “Defendant’s cost in the cause”
The plaintiff or the defendant, as the case may be, shall be entitled to the costs of the proceedings in respect of which such an order is made if judgment is given in his favour in the cause or matter in which the proceedings arise, but he shall not be liable to pay the costs of any other party in respect of those proceedings if judgment is given in favour of any other party or parties in the cause or matter in question;
“Costs thrown away” Where proceedings or any part of them have been ineffective or have been subsequently set aside, the party in whose favour this order is made shall be entitled to the costs of those proceedings or that part of the proceedings in respect of which it is made.
Cases where costs do not follow the event (O.62, r.6)
6(1) The provisions of this rule shall apply in the circumstances mentioned in this rule unless the Court orders otherwise.
(2) Where a person is or has been a party to any proceedings in the capacity of trustee, personal representative or mortgagee, he shall be entitled to the costs of those proceedings, in so far as they are not recovered from or paid by any other person, out of the fund held by him in that capacity or out of the mortgaged property, as the case may be, and the Court may order otherwise only on the ground that he has acted unreasonably or, in the case of a trustee or personal representative, has in substance acted for his own benefit rather than for the benefit of the fund.
(3) Where any person claiming to be a creditor-
(a) seeks to establish any claim to a debt under any judgment or order in accordance with Order 44, or
(b) comes in to prove his title, debt or claim in relation to a company in pursuance of any such notice,
he shall, if his claim succeeds, be entitled to his costs incurred in establishing it: and, if his claim or any part of it fails, he may be ordered to pay the costs of any person incurred in opposing it.
(4) Where a claimant (other than a person claiming to be a creditor) has established a claim to be entitled under a judgment or order in accordance with Order 44 and has been served with notice of the judgment or order pursuant to rule 2 of that Order, he shall, if he acknowledges service of the notice, be entitled as part of his costs of action (if allowed) to costs incurred in establishing his claim; and where such a claimant fails to establish his claim or any part of it he may be ordered to pay the costs of any person incurred in opposing it.
(5) The costs of any amendment made without leave in the writ or any pleadings shall be borne by the party making the amendment.
(6) The costs of any application to extend the time fixed by these rules or by any direction or order thereunder shall be borne by the party making the application.
(7) If a party on whom a notice to admit facts is served under Order 27, rule 2, refuses or neglects to admit the facts within 14 days after the service on him of the notice or such longer time as may be allowed by the Court, the costs of proving the facts and the costs occasioned by and thrown away as a result of his failure to admit the facts shall be borne by him.
(8) If a party-
(a) on whom a list of documents is served in pursuance of Order 24, or
(b) on whom a notice to admit documents is served under Order 27, rule 5,
gives notice of non-admission of any of the documents in accordance with Order 27, rule 4(2) or 5(2), as the case may be, the costs of proving that document and the costs 370 High Court Rules Cap 13A occasioned by and thrown away as a result of his non-admission shall be borne by him.
Special circumstances in which costs shall not or may not be taxed (O.62, r.7)
7(1) The provisions of this rule shall apply in the circumstances mentioned in this rule.
(2) Costs which by or under any direction of the Court are to be paid to a receiver appointed by the High Court, in respect of his remuneration, disbursements or expenses, shall be allowed in accordance with Order 30, rule 3 and shall not be taxed.
(3) Where a writ in an action is indorsed in accordance with Order 6, rule 2(1)(b), and judgment is entered on failure to give notice of intention to defend or in default of defence for the amount claimed for costs (whether alone or together with any other amount claimed), the plaintiff is not entitled to tax his costs; but if the amount claimed for costs as aforesaid is paid in accordance with the indorsement (or is accepted by the plaintiff as if so paid) the defendant shall be entitled to have those costs taxed.
(4) In awarding costs to any person the Court may order that, instead of his taxed costs, that person shall be entitled-
(a) to a proportion (specified in the order) of those costs from or up to a stage of the proceedings so specified; or
(b) to a gross sum so specified in lieu of those costs; but where the person entitled to such a gross sum is a litigant in person, rule 18 shall apply with the necessary modifications to the assessment of the gross sum as it applies to the taxation of the costs of a litigant in person.
(5) Where a claimant is entitled to costs under rule 6(3) the amount of the costs shall be assessed by the Court unless it thinks fit to order taxation and the amount so assessed or taxed shall be added to the debt due to the claimant.
(6) Subject to paragraph (7), where a party is entitled to costs under rule 6(7) or (8) the amount of those costs may be assessed by the Court and be ordered to be paid forthwith. Cap 13A High Court Rules 371
(7) No order may be made under paragraph (6) in a case where the person against whom the order is made is an assisted person within the meaning of the statutory provisions relating to legal aid.
This rule appears to empower the Court to order a gross sum in lieu of taxed costs but not to make arbitrary awards. No doubt it saves further cost and time by not having to provide the minutest detail in a bill of costs and to appear before a taxing master to argue the matter out.
In the Court of Appeal in Yanuca Island Ltd v Markham [2006] FJCA 67 (perhaps the most thorough examination in the Courts of Fiji on the issue of costs) the judgment notes at paragraph 41 and following:
Although a Judge does have an unlimited discretion in making a gross sum award of costs under O.62 r.7(4)(b), it is well recognised that the discretion must be exercised in a judicial manner. Referring to the English equivalent of the rule in question, Purchas LJ, delivering the judgment of the English Court of Appeal in Leary v Leary [1987] 1 All ER 261, 265 said:
"The unlimited discretion given by Ord 62., r.9 must be exercised in a judicial manner. How the powers are to be used varies widely from case to case and each case must be considered on its own merits. It is easy to envisage cases where a Judge could be said to have acted unjudicially: e.g. by clutching a figure out of the air without having any indication as to the estimated costs; receiving such an estimate without the details being made available to the other side; or refusing a request to hear submissions on such a schedule if the party against whom the order is to be made makes, on reasonable grounds, an application to be heard."
This case is another illustration of the difficulty that often arises where special orders as to costs are made, involving taxation of those relating to particular issues. Considering that the judge only awarded £5 where £25 had been paid into court, it is likely that in making the order that he did he intended the defendant to get some real benefit from it, in consequence of his having made the payment into court. In the view that the master took, he got nothing and, as a consequence of this review, it may still be that he will get very little. These difficulties and complicated taxations can be avoided by awarding to one side or the other what proportion of the costs the judge thinks fair. There is no doubt as to his jurisdiction to do so and anything which works in favour of simplicity in these matters is desirable. It is too much to expect that judges and counsel, to whom questions of taxation are unfamiliar, will always be conversant with the many and by no means easy cases on the subject; nor can solicitors instruct counsel in advance on a matter such as this, as they cannot know how the judge will exercise his discretion or in favour of which party it will be exercised. We may be allowed to conclude this judgment by quoting the closing passage of Lord Blanesburgh's speech in [Medway Oil & Storage Co v Continental Contractors [1929] AC 88], at p 112:
'... this appeal will not be without permanent utility if it brings home to learned judges the necessity, in cases like these, of adjusting critically their orders as to costs if these orders are not sometimes to produce results at once unintentional and unjust.'
We would add that the simplest way is to award costs in such proportions as the judge thinks fair.
It is hardly surprising that counsel, and even judges, are unfamiliar with the complexity and rules that apply to taxation; it is something that parties and their advisers seldom have the time or appetite for. It is in most cases better, and fairer, for the court to make an order reflecting the judge’s perception of the complexity and outcome of the case he/she has decided.
Costs sought by the first defendant
i. From commencement of proceedings
in 2007 to June 2017 72,000.00 (64,755)
ii. July 2017 – June 2018 23,187.03 (20,000)
iii. July 2018 – March 2020 61,768.12 (55,000)
$156,955.15
This total seems reasonable, taking into account the length and complexity of the proceedings, including 6 days of trial, 60 other court attendances (over the 13 year course of the proceedings, before seven different judicial officers), listed by counsel for the first defendant in his submissions.
Photocopying costs (@ $1.00 per page) 7806.00
Court fees 1795.95
Solicitors costs 91491.00
$101,092.95
14.2 Principles applying to determination of costs
(1) The following general principles apply to the determination of costs:
(a) the party who fails with respect to a proceeding or an interlocutory application should pay costs to the party who succeeds:
(b) an award of costs should reflect the complexity and significance of the proceeding:
(c) costs should be assessed by applying the appropriate daily recovery rate to the time considered reasonable for each step reasonably
required in relation to the proceeding or interlocutory application:
(d) an appropriate daily recovery rate should normally be two-thirds of the daily rate considered reasonable in relation to the proceeding
or interlocutory application:
(e) what is an appropriate daily recovery rate and what is a reasonable time should not depend on the skill or experience of the solicitor
or counsel involved or on the time actually spent by the solicitor or counsel involved or on the costs actually incurred by the party
claiming costs:
(f) an award of costs should not exceed the costs incurred by the party claiming costs:
(g) so far as possible the determination of costs should be predictable and expeditious.
and these principles (some of which are not dissimilar to the principles prescribed in O.62., r13 to guide the Taxing Officer in taxing a bill of costs) operate as guidelines in the judicial exercise of the court’s discretion. It is clear from the Schedule of Costs filed by the first defendant that the costs have been calculated on the basis of an hourly rate of $300.00, and although there has been no evidence as the reasonableness or otherwise of this rate, there has been no evidence put forward by ILTB to the effect that the rate is not reasonable.
Conclusion
Solicitors/counsel costs 85000.00
photocopying costs 3661.00
court fees 1739.70
costs on this application 2000.00
$92400.70
__________
A.G. Stuart
Judge
At Lautoka this 26th day of March, 2021
SOLICITORS:
Young & Associates of Lautoka, for Honeymoon Island (Fiji) Limited (Plaintiff in HBC 257/2007 and First Defendant in HBC 225/2007)
iTaukei Land Trust Board for ILTB (interested party in HBC 225/2007 and defendant in HBC 257/2007)
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