Professional Documents
Culture Documents
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Meaning
Remuneration which a party pays to his own solicitor for his professional services
legal advice; attendances,; drafting and copying documents; conducting legal proceedings, etc.
The sum which one litigant pays to another litigant to compensate the latter for the expense which he has incurred in the litigation
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Meaning
O59 r1(1) RHC
costs includes fees, charges, disbursements, expenses and remuneration; taxed costs means costs taxed in accordance with this Order.
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Entitlement to costs
Subject to the provisions of O59, no party shall be entitled to recover any costs of or incidental to any proceedings from any other party to the proceedings except under an order of the Court O59 r3(1) RHC. An order for costs is therefore essential, ie the court must make an order as to costs to enable a party to recover such costs incidental to the proceedings, except for matters falling under O59 rr10(1) and 11(1) RHC.
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Principles
Discretion
The award of costs is in the discretion of the court O59 r2(2) RHC
Principles
The principles are these. (1) Costs are in the discretion of the court. (2) They should follow the event, except when it appears to the court that in the circumstances of the case some other order should be made. (3) The general rule does not cease to apply simply because the successful party raises issues or makes allegations on which he fails, but where that has caused a significant increase in the length or cost of the proceedings he may be deprived of the whole or a part of his costs. (4) Where the successful party raises issues or makes allegations improperly or unreasonably, the court may not only deprive him of his costs but order him to pay the whole or a part of the unsuccessful party's costs.
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the court may award the winner only a proportion of his costs from or up to a specified stage of the proceedings; the court may make no order as to costs;
Cheng Mun Siah v Tan Nam Sui [1980] 2 MLJ 269 Re Syed Ahmed Hood Alsagoff decd [1961] MLJ 150 Anna Jong Yu Hiong v Government of Sarawak [1972] 2 MLJ 244
the winner may have to pay the losers costs of certain matters O59 r2(2) RHC
Chen Chow Lek v Tan Yew Lai [1983] 1 MLJ 170
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Other exceptions
Other exceptions
O59 r3(5) RHC O59 r3(6) RHC O59 r3(7) RHC
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Taxation of costs
The party receiving costs in entitled only to his taxed costs.
The party will send his bill of costs to the other party and where the other party does not agree with the bill of costs, he is entitled to have the bill of costs taxed by the Registrar.
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Taxation of costs
Procedure
A part entitled to require any costs to be taxed must begin proceedings for the taxation of those costs by producing at the Registry the bill of costs and a copy thereof together with all necessary papers and vouchers O59 r20 RHC Where proceedings for taxation have been duly begun in accordance with r20, then, subject to paragraph (2) of this rule and rule 23, the Registrar shall give to the party beginning the proceedings and to any other party entitled to be heard in the taxation proceedings, not less than 7 days notice of the day and time appointed for taxation O59 r21 RHC
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Taxation of costs
Procedure
A party whose costs are to be taxed in any taxation proceedings, must within 2 days after receiving a notice under rule 21(1) send a copy of his bill of costs to every other party entitled to be heard in the proceedings - O59 r22 RHC
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Taxation of costs
Bases of taxation
Party and party basis
O59 r27(2) RHC
Trustee basis
O59 rr30(1) and (2) RHC
Indemnity basis
EMI Records Ltd v Ian Cameron Wallace Ltd [1982] 2 All ER 980
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Taxation of costs
Several parties
Where several parties are involved in an action, the court may make either a Bullock or a Sanderson order. Illustration
The plaintiff decides to bring proceedings against two defendants in the alternative. For instance, a pedestrian who was injured by a collision between two vehicles sues both drivers. If the plaintiff succeeds only against one defendant, the court in its discretion may order the unsuccessful defendant to pay the successful defendants costs.
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Taxation of costs
Several parties
Illustration
This may be done either
by an order that the unsuccessful defendant pay the successful defendants costs direct to him Sanderson order; or by an order that the plaintiff pay the successful defendants costs to him and recover them from the unsuccessful defendant as part of the plaintiffs cost of the action Bullock order
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Plaintiffs/Defendants costs
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But where the judgment obtained by the plaintiff is bad and irregular, the defendant is entitled to have it set aside as of right and to have the costs thrown away.
This means that each party must bear his own costs of the proceedings.
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No order as to costs
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that the plaintiff is ordinarily resident out of the jurisdiction; or that the plaintiff (not being a plaintiff who is suing in a representative capacity) is a nominal plaintiff who is suing for the benefit of some other person and that there is reason to believe that he will be unable to pay the costs of the defendant if ordered to do so; or subject to paragraph(2), that the plaintiff's address is not stated in the writ or other originating process or is incorrectly stated therein; or that the plaintiff has changed his address during the course of the proceedings with a view to evading the consequences of the litigation,
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is the plaintiffs claim bona fide? Has he reasonably good prospects of success? is there admission by the defendant? is the application oppressive in nature, that is, to stifle a genuine claim? has the plaintiffs want of means been brought on by the defendant? at what stage of the proceedings is the application made?
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