Costs – Order 63

Question 1

What is tax in the context of an order for costs?

Answer 1

An order for costs can be taxed on the standard basis or an indemnity basis (or such other basis as directed by the Court) (r 63.28).

Question 2

What is tax on standard basis?

Answer 2

All costs reasonably incurred and of reasonable amount - r 63.30
The default is the standard basis (r63.31).

Question 3

What is tax on an indemnity basis?

Answer 3

Indemnity basis - r 63.30.1
1. all costs shall be allowed except in so far as they are of an unreasonable amount or have been unreasonably incurred;
2. Any doubt shall be resolved in favour of the party to whom the costs are payable.
An indemnity basis covers all costs except insofar as they are an unreasonable amount or unreasonably incurred.

Question 4

How are legal practitioner costs calculated?

Answer 4

Whichever basis costs are taxed at, legal practitioners are entitled to recover the costs included within the scale at Appendix A (witnesses and interpreters as per Appendix B). The Court can allow for a 30% uplift arising from the nature, importance, difficulty or urgency of the case.