Part 15: Assessment of Costs Matters and Costs

130. Scope of certain paragraphs 131. Form of bill of costs Margin Pagination Format Particulars Goods and services tax 132. Electronic filing of bills of costs for assessment 133. Objections 134. Amount allowed as disbursements on account of use of Electronic Filing Service 135. Assessments involving the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid 136. Fixing costs instead of ordering assessment 137. Costs Scheduling 138. Costs Guidelines

To avoid doubt, the directions contained in this Part, save for paragraph 135, do not apply to assessments governed by the Bankruptcy (Costs) Rules or the Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules 2020.

The attention of solicitors is drawn to Order 21, Rules 2(2) and 20 of the Rules of Court 2021. In addition, solicitors are to abide by the following requirements:

Margin

A blank margin not less than 10mm wide on all four sides is required for each page of the bill of costs.

Pagination

All pages of a bill of costs (including, where applicable, the cover page, the table of contents, separator sheets and exhibit sheets) must be paginated such that the printed page numbers correspond to the page numbers in the soft copy Portable Document Format (PDF) version of the document that is filed through the Electronic Filing Service, the page number must be inserted at the top right hand corner of the page, and, where there are multiple volumes, each separate volume must start at page 1, and every page in that volume must be numbered consecutively.

Format

This sub-paragraph sets out the format of a bill of costs.

PARTY-AND-PARTY BILLS (a) For party-and-party bills: (i) A bill of costs drawn up for assessment of costs between one party to proceedings and another should be divided into 3 separate sections as required by Order 21, Rule 20(1) of the Rules of Court 2021. (ii) Form B30 in Appendix B of these Practice Directions should be used for contentious business in respect of work done for a trial or in contemplation of a trial. (iii) Form B31 in Appendix B of these Practice Directions should be used for contentious business in respect of, or in contemplation of, work done other than for a trial; such as work done for an appeal or for a specific interlocutory application. (iv) Form B32 in Appendix B of these Practice Directions should be used for non-contentious business. SPECIMEN BILLS (b) Specimen bills illustrating the use of Forms B30, B31 and B32 in Appendix B of these Practice Directions are found in Appendix E of these Practice Directions. SOLICITOR-AND-CLIENT BILLS (c) A bill of costs drawn up for assessment of costs between a solicitor and his or her client should be drawn up in the same manner described in sub-paragraph (3)(a) except as follows: (i) A solicitor will be deemed to have indicated that all items included in the bill are in relation to work done or disbursements incurred with the approval of the client. (ii) Any agreement, whether oral or in writing, between the solicitor and his or her client relating to the amount of costs payable either as a global sum or in respect of particular items included in the bill should be indicated on the bill. Any agreement between the solicitor and his or her client as to the rate to be used to compute the solicitor’s costs should also be indicated in the bill. BILLS OF COSTS REQUIRED TO BE ASSESSED UNDER SECTION 18(3) OF THE MOTOR VEHICLES (THIRD-PARTY RISKS AND COMPENSATION) ACT 1960 (d) Whenever costs are required to be assessed by virtue of the Motor Vehicles (Third-Party Risks and Compensation) Act 1960, a bill should be drawn up for assessment between the solicitor and his or her client and another bill drawn up for assessment between the client and the other party to the proceedings in which the solicitor acted for the client. A waiver of the filing fees for the solicitor-and-client bill may be requested when this bill is filed: (i) The party-and-party bill should be filed first and the solicitor-and-client bill should reference the first bill. (ii) The party-and-party bill and the solicitor-and-client bill can be drawn up as described in sub-paragraph (3)(a) and (c) with the modification set out in sub-paragraph (3)(d)(iii) below. (iii) It is not necessary to repeat serially in the solicitor-and-client bill the items which have already been serially set out in the party-and-party bill. It is sufficient, ordinarily, to incorporate all such items by reference and proceed to set out in detail any additional items, i.e., items not already set out in the party-and-party bill. However, if a sum claimed for an item of disbursement in the solicitor-and-client bill is different from the corresponding sum claimed in the party-and-party bill, it will be necessary to set out serially again in the solicitor-and-client bill all the items of disbursement already set out in the party-and-party bill (including, where appropriate, the different sum or sums claimed) as well as additional items of disbursement not so set out. In addition, the global sums claimed for Sections 1 and 2 of the solicitor-and-client bill should be indicated at the end of the respective sections whether or not they are the same sums as those claimed for Sections 1 and 2 of the party-and-party bill.

Particulars

Sufficient particulars must be included in the bill of costs so as to enable the Registrar to exercise his or her discretion under Order 21, Rule 2(2) of the Rules of Court 2021. Without limiting sub-paragraph (3), the Registrar may, at the assessment hearing, order the claiming or receiving party to furnish full details in support of the sums claimed under the bill.

Goods and services tax

A party claiming goods and services tax (GST) in a bill of costs must comply with the directions set out in this sub-paragraph. A party who fails to comply with the directions set out in this sub-paragraph will be presumed not to be claiming GST in the bill concerned.

REGISTRATION NUMBERS (a) For registration numbers, (i) The GST registration number allocated by the Comptroller of Goods and Services Tax to the solicitors for the receiving party or parties should appear at the top left hand corner of the first page of the bill of costs. (ii) The GST registration numbers, if any, allocated to the receiving parties or to any one or more of them, as the case may be, must also appear at the same location in all documents. (iii) The GST registration numbers should be indicated as follows: “GST Reg. No. (solicitors for claimant/solicitors for 1st defendant/2nd defendant (or as the case may be)): xxxxx.” (iv) Where no GST registration number has been allocated to a receiving party, a statement to this effect should be included after the GST registration numbers of the solicitors for the receiving parties, or the receiving parties, as the case may be, in the following manner: “1st and 2nd defendants/3rd claimant/(or as the case may be): no GST Reg. No.” INPUT TAX ALLOWABLE (b) The proportion of input tax for which the receiving parties, or one or more of them, are not entitled to credit should be stated, as a percentage, in parentheses after the GST registration number of the party or parties concerned. For a person who is not liable to be registered within the meaning of the First Schedule to the Goods and Services Tax Act 1993, this proportion should be 100%. APPORTIONMENT (c) For apportionment: (i) The first and second sections of the bill of costs, which set out the work done in the cause or matter except for assessment of costs and the work done for and in the assessment of costs, should each be divided into such number of parts as will enable the bill to reflect the different rates of GST applicable during the relevant period of time. (ii) The third section, which sets out the disbursements made in the cause or matter, should similarly be divided, with the first part setting out the disbursements on which no GST is chargeable by the solicitors for the receiving party or the receiving party, as the case may be. SUMMARY OF THE GOODS AND SERVICES TAX CLAIMED FOR WORK DONE (d) Where applicable, the following information should be included at the end of the first and of the second sections: (i) the global sum of costs claimed for work done during each period for which a different rate of GST applies or no GST applies; (ii) the proportion, as a percentage, of input tax for which the receiving parties, or one or more of them, are not entitled to credit; (iii) a quantification of the input tax on the costs claimed in the section concerned for which the receiving parties, or one or more of them, are not entitled to credit; and (iv) a quantification of the GST claimed on the costs claimed in the section concerned. SUMMARY OF THE GOODS AND SERVICES TAX CLAIMED FOR DISBURSEMENTS (e) Where applicable, the following information should be included at the end of the third section: (i) a summation of the disbursements on which no GST is chargeable by the solicitors for the receiving party or the receiving party, as the case may be; (ii) a summation of the disbursements on which GST at the applicable rate is chargeable by the solicitors for the receiving party or the receiving party, as the case may be; (iii) the proportion, as a percentage, of input tax for which the receiving parties, or one or more of them, are not entitled to credit; (iv) a quantification of the input tax on the disbursements on which GST is chargeable by the solicitors for the receiving party for which the receiving parties, or one or more of them, are not entitled to credit; and (v) a quantification of the GST claimed on the disbursements. REGISTRAR’S CERTIFICATE (f) The total amount of GST allowed on a bill of costs will be indicated as a separate item in the Registrar’s certificate. Solicitors are responsible for ensuring that the GST figures accurately reflect the sums allowed by the Registrar.

Each bill of costs submitted to the Court through the Electronic Filing Service must:

be in Portable Document Format (PDF); (b) comply with paragraph 131 of these Practice Directions; and (c) be accompanied by a bill of costs summary, the electronic form of which will be composed online through the Electronic Filing Service. The information required by the Electronic Filing Service to compose the bill of costs summary includes the costs claimed under Sections 1, 2 and 3 of the bill of costs.

As the Registrar’s certificate of costs under Order 21, Rule 25 of the Rules of Court 2021 will be composed online based on the summary in sub-paragraph (1)(c), solicitors should ensure that the information contained in the summary accurately reflects the information contained in the bill of costs submitted. Solicitors should also ensure that the amounts claimed for goods and services tax in the summary are correct.

There is no necessity for lawyers to collect the assessed bill of costs from the Registry to prepare the Registrar’s certificate. The procedure for preparation of draft orders in paragraph 107 of these Practice Directions will, with the necessary modifications, apply to the preparation of the Registrar’s certificate.

The Registrar’s certificate must be composed online through the Electronic Filing Service.

Any objections in principle or as to quantum of the items claimed in a bill of costs must be indicated by the filing and service of a Notice of Dispute in Form B33 of Appendix B of these Practice Directions at least 14 days before the date fixed by the Registrar for the assessment of the bill of costs.

The Notice of Dispute must be filed through the Electronic Filing Service in Portable Document Format (PDF) and be accompanied by a Notice of Dispute summary, the electronic form of which will be composed online through the Electronic Filing Service. The information required by the Electronic Filing Service to compose the Notice of Dispute summary includes the amounts of costs to be awarded under Sections 1, 2 and 3 of the bill of costs according to the paying party.

If a document is filed using the Electronic Filing Service, $0.40 for each page of the document filed must be allowed as costs between parties to proceedings. Such costs may be claimed by a receiving party from the paying party where the receiving party is entitled to costs for the filing of the document. These costs must be allowed in addition to all other disbursements and Court fees.

This paragraph applies to the assessment of costs as well as cases where the Court fixes a gross sum instead of directing an assessment.

This paragraph does not apply to any document filed through the service bureau.

The directions contained in this paragraph must be followed in respect of all assessments in which the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid is involved.

For all assessments in which the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid is involved:

the receiving party must, prior to the filing of the bill of costs in Court through the Electronic Filing Service, send the bill of costs to be filed to the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid, as the case may be; (b) the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid, as the case may be, should then inform the receiving party whether he or she agrees or disagrees with the amounts claimed in the bill of costs; and (c) when filing the bill of costs in Court through the Electronic Filing Service, the receiving party must state whether the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid, as the case may be, disagrees with the amounts claimed in the bill of costs. The bill of costs should also be served on the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid, as may be applicable, on the same day that the bill of costs is filed.

If the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid, as the case may be, agrees with the amounts claimed in the bill of costs, then:

for costs required to be assessed pursuant to the provisions of the Motor Vehicles (Third-Party Risks and Compensation) Act 1960: (i) where no party-and-party bill of costs has been filed; or (ii) where the solicitor-and-client costs is not referenced to a party-and-party bill filed early, the receiving party and the Public Trustee need not attend at the assessment and the bill will be assessed in their absence. However, if the Registrar disagrees with the quantum of costs agreed on, he or she may nonetheless direct the attendance of the receiving party and the Public Trustee, at a later date; (b) for: (i) party-and-party bills filed by the creditor under the Bankruptcy (Costs) Rules or the Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules 2020, to which the estate of the bankrupt is the respondent; (ii) party-and-party bills filed by the creditor in companies winding-up matters where the Official Receiver is appointed liquidator and to which the company in liquidation is the respondent to the bill of costs; or (iii) solicitor-and-client bills filed pursuant to the Legal Aid and Advice Act 1995 where the Director of Legal Aid is the respondent, the receiving party and the Official Assignee, the Official Receiver or the Director of Legal Aid, as the case may be, need not attend at the assessment and the bill will be assessed in their absence. However, if the Registrar disagrees with the quantum of costs agreed on, he or she may nonetheless direct the attendance of the Official Assignee, the Official Receiver or the Director of Legal Aid, as the case may be, and the receiving party, at a later date.

If costs are required to be assessed pursuant to the provisions of the Motor Vehicles (Third-Party Risks and Compensation) Act 1960 and the bill of costs claiming the same is referenced to an earlier party-and-party bill filed pursuant to paragraph 131(3)(d), the Public Trustee need not attend the assessment of the bill and the party-and-party and solicitor-and-client costs will be assessed in the absence of the Public Trustee. However, the Public Trustee may attend at the assessment if he or she so wishes, and must attend if an express direction is made by the Registrar that he or she attends in relation to a particular bill of costs.

Order 21, Rule 2(3) of the Rules of Court 2021 provides that:

Powers of the Court (O. 21, r. 2) … (3) Subject to the provisions of this Order and any written law, the costs payable by any party to any other party in any matter must be fixed by the Court which heard the matter after an oral hearing or by way of written submissions from the parties, unless the Court thinks fit to direct an assessment of the costs.

Counsel should therefore be prepared to make submissions on the entitlement to and quantum of costs at the end of a hearing or trial, whether before or after judgment is delivered.

Counsel should note that the Court may fix costs where costs have been ordered to be in the cause, or on hearing applications for dismissal or striking out pursuant to an unless order, and be prepared to make submissions accordingly.

The directions contained in this paragraph apply to:

trials of originating claims in open court, including originating claims that were ordered to be converted from originating applications; and (b) originating applications involving cross-examination of any maker of an affidavit.

Each party to the proceedings described in sub-paragraph (1) is required to file a costs schedule using Form B34 in Appendix B of these Practice Directions. The costs schedule should set out with sufficient particularity the quantum of party-and-party costs and disbursements that the party intends to claim in the event that the party succeeds. A specimen form illustrating the use of Form B34 in Appendix B of these Practice Directions can be found in Appendix F of these Practice Directions.

The relevant costs schedule will be taken into account for the purposes of assessing the quantum of costs to be awarded for the proceedings.

The costs schedule for the proceedings described in sub-paragraph (2) must be filed together with the parties’ written closing submissions or, where there are no written closing submissions, before the parties’ oral closing submissions are presented.

Solicitors making submissions on party-and-party costs (whether at assessment hearings or otherwise) or preparing their costs schedules pursuant to paragraph 137 of these Practice Directions should have regard to the costs guidelines set out in Appendix G of these Practice Directions (the “Costs Guidelines”).

The Costs Guidelines are to serve only as a general guide for party-and-party costs awards in the Supreme Court. The precise amount of costs awarded remains at the discretion of the Court and the Court may depart from the amounts set out in the Costs Guidelines depending on the circumstances of each case.

To avoid doubt, nothing in the Costs Guidelines is intended to guide or influence the charging of solicitor-and-client costs.