ROYAL COURT OF
TAXATION OF COSTS
AWARDED ON THE STANDARD
BASIS IN CIVIL
Practice Direction applies to the taxation of costs awarded by the Royal Court on the
standard basis in civil proceedings.
It is issued pursuant to Rule 12/14 of the Royal Court Rules 2004 and
largely repeats the provisions of Practice Direction RC05/11 which is hereby
revoked. For taxation of costs on
the indemnity basis see Practice Direction RC 09/02 and for taxation by summary
assessment in interlocutory applications see Practice Direction RC 09/03.
2.0 AMOUNT OF COSTS ON TAXATION: DETERMINATION
OF THE TOTAL SUM FOR FACTOR 'A' AND
THE FACTOR `B' UPLIFT
amount of costs to be allowed on taxation shall (subject to any Rule or Order
of the Court fixing the costs to be allowed) be in the discretion of the
exercising his discretion with regard to the total sum for Factor 'A' and the
Factor 'B' uplift, the Greffier shall have regard to all the relevant
circumstances, and in particular to:
complexity of the item or of the cause or matter in which it arises and the
difficulty or novelty of the questions involved;
(b) the skill, specialised knowledge and
responsibility required of, and the time and labour expended by, the solicitor
number and importance of the documents (however brief) prepared or perused;
(d) the place and circumstances in which the
business involved is transacted;
the importance of the cause or matter to the client;
money or property is involved, its amount or value; and
other fees and allowances payable to the solicitor or advocate in respect of
other items in the same cause or matter, but only where work done in relation
to those items has reduced the work which would otherwise have been necessary
in relation to the item in question.
3.0 SPECIFIED FORMAT FOR THE LAYOUT OF THE BILL OF COSTS
bill of costs shall be set out in either Form 1 or Form 2 attached hereto and
consist of such items specified below as may be appropriate. Each such item
(other than an item relating only to time spent in travelling and waiting) may
include an allowance for general care and conduct having regard to such of the
circumstances referred to in paragraph 2 above as may be relevant to that item.
(a) (i) Attending
the hearing of any summons or other application at Court, in chambers, the
Judicial Greffe or elsewhere.
(a) (i) Attending
at Trial or Hearing
(a) (i) Attending
the trial or hearing of a cause or matter, or an appeal or to hear a deferred
Part A: The doing of any work which was reasonably done arising out of or
incidental to the proceedings, including:-
Client: taking instructions to sue, defend, counterclaim, petition,
cross-petition, appeal or oppose etc., attending upon and corresponding with
Client; taking and preparing proofs of evidence;
interviewing and corresponding with witnesses and potential witnesses, taking
and preparing proofs of evidence and, where appropriate, arranging attendance
Evidence: obtaining and considering reports or advice from experts and
plans, photographs and models; where appropriate arranging their attendance at
inspecting any property or place material to the proceedings;
and Enquiries: making searches at offices of public records and elsewhere
for relevant documents; searches in the Company Records maintained by the
Financial Services Commission and similar matters;
Damages: obtaining details of special damages and making or obtaining any
Parties: attending upon and corresponding with other parties or their
advocates or solicitors;
perusing, considering or collating documents for affidavit or list of
documents; attending to inspect or produce for inspection any documents
required to be produced or inspected by order of the Court; considering and
collating documents in response to questionnaires for further disclosure;
preparation and consideration of pleadings and affidavits;
research, consideration and preparation of relevant cases, statutes, textbook
extracts and others authorities;
Bundle: preparation, photocopying, paginating and compiling court bundles
or other documents;
Preparation: consideration and preparation for trial or hearing;
work done in connection with negotiations with a view to settlement;
where relevant, the calculation of interest;
preparation and service of miscellaneous notices, including notices to
witnesses to attend court.
Part B: The general care and conduct
of the proceedings.
Part C: Travelling and waiting time in
connection with the above matters.
(a) (i) Preparing
the bill, responding to notified objections or questions and, if applicable,
preparing for and attending the taxation;
information and detail on the content and layout of a bill of costs is
contained in Appendix `A' attached to this Practice Direction and should be
referred to and considered in conjunction with this Practice Direction.
4.0 EFFECTIVE DATE
Practice Direction comes into force on 1st February 2009.
APPENDIX `A' TO
PRACTICE DIRECTION RC 09/01
NOTES FOR GUIDANCE
Taxation Practice shall apply to all taxation proceedings arising from an Order
of the Court for costs made on or after 1st February, 2009.
by explaining what information to include in a bill of costs without resorting
costs that may or may not be allowed on taxation; and
in identifying what supporting documents should accompany the bill of costs.
to a paragraph number in this Taxation Practice without further reference shall
mean a paragraph number under Practice Direction RC 09/01.
chargeable item shown in the bill of costs should be represented in two parts,
namely a direct cost component (Factor
`A') and a component for care and conduct (Factor `B'), unless some other method of charging is referred to or
allowable. The direct cost component is intended to cover the salary and the
appropriate share of the general overheads of each such person. The particular
elements that are found to constitute the average direct costs of that category
of average fee earner and the methodology employed therein shall be determined
by the Superior Number of the Royal
Court with the advice and assistance of a
committee specially constituted for that purpose.
second component, the allowance for care and conduct, is intended to reflect all
the relevant circumstances of the case and in particular the matters set out in
Practice Directions RC 09/01 and RC 05/12. It is also intended to reflect those
imponderable factors, for example general supervision of subordinate staff, for
which no direct time charge can be substantiated, and the element of commercial
profit. Accordingly the allowances to be made for different items may, in the
discretion of the taxing officer, be allowed at different rates. In particular
it is anticipated that, save in unusual circumstances, the rate appropriate to
paragraphs 3(1),(2) and (5) for care and conduct will be less than the rate
appropriate to paragraphs 3(3) and (4) for general care and conduct. See
paragraph 5 of this Taxation Practice for further information.
2.0 BILL OF COSTS FORMAT
bill of costs submitted for taxation should be in either Form 1 or Form 2. The
bill should commence with a headnote that mirrors the headnote of the
pleadings. Pending or Sine die numbers should be shown, where applicable, and
the names of the legal practices representing each party, who are parties
entitled to be heard at these taxation proceedings, should also be included.
This should be followed by the details of the receiving and paying parties and
the Act of Court under which the bill of costs is drawn. The first entry under
the headnote should contain a brief narrative setting out the factors on which
the receiving party relies in support of care and conduct [Factor
‘B’] claimed in his bill if that claimed is above the base Factor
‘B’ rates set out at paragraphs 5 of this Taxation Practice. All
unusual or exceptional factors should be identified. If bill of costs, Form 2,
is adopted, this statement in support of Factor B should be in greater detail
and listed by area. The second entry under the headnote should set out the
status of the fee-earners concerned and the expense rates [Factor
‘A’] claimed for each. The third entry under the headnote should
set out the care and conduct rates [Factor ‘B’] claimed under
paragraphs 3(1) to 3(5).
bill should then set out in chronological order (with the date shown) all the
relevant events that constitute a chargeable item and the amount claimed should
be shown against it. Where any event has occasioned a disbursement, the amount
claimed for that disbursement should be shown. All chargeable items and
disbursements inserted within the bill should be numbered consecutively. This
number should be set out in a separate column located on the far left hand side
of the bill. Finally, every bill shall be signed by the Advocate or Jersey
Solicitor submitting the bill prior to lodging for taxation. (Also add name in
block capitals). The signature implies that the bill has been checked by an
appropriately qualified person, the bill is complete, and accepts
responsibility for the factual accuracy of the bill.
bills of costs set out in Form 1, paragraphs 3(1), (2) and (3) should show
separately the time engaged and the allowances claimed for care and conduct and
for the time engaged in traveling and waiting. Also, paragraph 3(4), which
comprises the general work of preparation, is to be placed after all the other
items save only paragraph 3(5) which is to be the last item.
bills of costs set out in Form 1, paragraph 3(4) should be divided into three
A In this part the work done and the amount claimed for it should be set out in
separate sections as indicated in paragraph 3(4). Each section or sub-section
should contain a breakdown of the work comprised in it and should have its
separate sub-total. At the foot of the last of these sections there should be
shown a total part A figure.
B The amount claimed for general care and conduct on the basis of the guidance
given in these notes should be claimed as a separate monetary amount which
should also be expressed as a percentage of the total part A figure. This part
should include a statement identifying those factors in Practice Direction RC
09/01, paragraph 2 which are relied on in relation to the assessment of the
claim for general care and conduct.
C In this part an amount should be claimed for time engaged in travelling and
waiting without uplift in connection with the work comprised in part A only.
Details should be given showing to which part of that work the claim or claims
section sub-totals and the totals of parts A, B and C figures referred to above
should be shown in the narrative column of the bill. The aggregate of those
figures should be shown in the costs column.
of Costs set out in Form 2 should show separately (a) the time claimed; (b) the
status of the fee earner; (c) the Factor B area, namely paragraph 3(1) to 3(5);
and (d) the total cost; in that order.
time will be allowed in respect of each item at the full amount of the
appropriate expense rate. Waiting time will be similarly allowed but neither
travelling nor waiting time will attract any allowance for care and conduct.
3.0 SPECIFIC MATTERS OF TAXATION
(including facsimile and e-mail) and telephone calls will in general be allowed
on a unit basis of 6 minutes each, the charge being calculated by reference to
the appropriate expense rate. The unit charge for letters will include perusing
and considering the relevant letters in and no separate charge should be made
for incoming letters. The Greffier may allow an actual time charge for letters
of substance and for telephone calls which properly amount to an attendance,
providing details of the work done are provided and the date and time taken has
kept and detailed contemporaneous time records are helpful in support of a bill
provided they explain the nature of the work as well as recording the time
involved. However, they cannot be accepted as conclusive evidence that the time
recorded either has been spent or if spent, is "reasonably"
chargeable. The absence of such records may disadvantage the party claiming
should accompany the bill for all payments claimed (other than court fees or
minor out of pocket disbursements) and should, when appropriate, be accompanied
by details showing the work done, the time spent, by whom and when, and the
computation of the charge. Lawyers are also reminded that this should include
details of all accounts, both sent and pending, to be paid by their client.
of costs submitted by lawyers outside the jurisdiction (including Counsel)
should include within the bill sufficient detail to enable the paying party to
properly consider that claimed. In this regard, Counsel's fees should be broken
down identifying the work undertaken and the corresponding cost. In appropriate
cases the Greffier may request further information.
travelling expenses are claimed they should be shown as a disbursement and details
supplied. Local travelling expenses will not be allowed.
cost of postage, couriers, outgoing telephone calls, fax and telex messages is
in general part of the lawyer's normal overhead expense, but the Greffier may
in his discretion allow such a disbursement in unusual circumstances or where
the cost is unusually heavy. In these circumstances the lawyer must show that
this cost could not reasonably be supposed to have been taken into account when
the expense rate was ascertained.
making of copies of documents is part of the lawyer's normal overhead expense.
The Greffier may in his discretion make an allowance for copying in unusual
circumstances or when the documents copied are unusually numerous in relation
to the nature of the case. Where this discretion is invoked the number of
copies made, their purpose, and the charge claimed should be set out in the
bill. If copies have been made out of the office the cost should be shown as a
disbursement. If made in the office, a charge equivalent to the commercial cost
should be claimed. A charge based on the time expended by a member of the
lawyer's staff will not be allowed.
details of the work done need be provided for item 3(5)(a) but on taxation the
party entitled to the costs must justify the amount claimed. In general, the
drawing of a bill of costs is not Advocate's work and should be delegated.
4.0 DOCUMENTS IN SUPPORT
for the taxation of costs should commence by filing the requisite documents at
the Judicial Greffe, as required by Rule 12/10.
addition the following supporting documentation should be submitted at the same
done under "Preparation", item 3(4)(ix),(x),(xi) and (xii) (Form 1)
or in the case of a bill of costs set out in form 2, should include within the
bill the following information:
date when the work was done;
description of the work;
status of the fee earner who did the work; and
how long the work took;
the receiving party is on legal aid, a copy of that certificate;
copy of the indexes to Court bundles relied on by both sides. If an agreed
bundle was submitted this should be noted;
of accounts referred to under 3.3 above;
of documents in support of disbursements referred to under 3.5 and 3.6 above;
bills of costs by lawyers outside the jurisdiction are claimed, full
documentation as required under 3.4 above;
time records referred to under 3.2 above;
appropriate cases the Greffier may request that the receiving party submit
their office files to assist with taxation. If this request is made, it is the
responsibility of the Lawyer submitting the office files to ensure that
everything necessary to justify the bill of costs is included. In particular,
the lawyer may wish to specifically identify documents referred to in the bill
of costs or on which he relies in support of the sum claimed for care and
conduct. A simplified method would be acceptable, for example, by yellow tags or
the like. The said files should be delivered to the Judicial Greffe within
seven days after receiving notice of the same, unless in all the circumstances
of the matter a longer time period has been allowed.
5.0 FACTOR ‘B’ NOTES FOR GUIDANCE
Directions RC 09/01 and RC 05/12 set out the basis for the determination of
factor ‘B’ in Civil and Criminal cases respectively.
the exercise of his Judicial discretion the taxing officer should have regard
- all the circumstances of the
- those particular matters set
out in RC 09/01 (for Civil bills) or RC 05/12, (for Criminal bills); and
- the representations of both
sides on taxation, setting out their contentions in support of or in opposition
to the factor ‘B’ claimed in the receiving party’s bill of
costs. This is an opportunity for all sides on taxation to set out in detail
with supporting authorities their submission on factor ‘B’.
specified format for the layout of the bill of costs provides that the bill
should contain up to 5 items, namely:
at Trial or Hearing
‘B’ is determined for each item in the bill. See below for
factor ‘B’ is a new concept on taxation in this jurisdiction, it
has nevertheless been successfully applied for many years in England. As
this jurisdiction has adopted many of the principles and practices found under
the English system of taxation, for example the layout of the bill of costs and
the determination of factor ‘B’, decided case law on taxation
matters under the English system may offer some assistance in identifying an
appropriate factor ‘B’ for a particular set of facts in this
jurisdiction. The actual factor ‘B’ allowable on taxation will, of
course, flow from the exercise of judicial discretion on the facts of the
particular case, as referred to above.
following cases may assist the legal practitioner in arriving at an appropriate
(A) ITEM 1, 2 AND 5
Brush v Bower Cotton & Bower  4 ALL
ER 741 QBD.
set down on the starting point by Brooke J:
should start with a norm of 35%.”
starting point of 35% refers to "run of the mill" or straightforward
actions. As set out in Johnson below,
this figure will increase above 35% so as to reflect all the circumstances of
the case that take it out of the ordinary category. For example, in Brush -v- Bower, Brooke J, allowed 50%
for one element of interlocutory work.
actions contain issues of specific or technical difficulty, the assessment of
volumes of documents and consideration of issues of law. Whether a particular
case is different in kind from the category of cases that can be termed
straightforward will depend on the facts of each case, The party drawing the
bill of costs should set out those matters in support when claiming above the
starting point of 35%.
(B) ITEM 3
separate functions of Counsel and Solicitor, found under the English system, do
not apply in this jurisdiction. A Jersey Advocate has an all embracing role
encompassing the work of both English Solicitor and Counsel. In recognition of
this role and the additional responsibility thereof, for "Attendance at
trial or Hearing", this is assessed on the same basis as item 4 below.
-v- Reed Corrugated Cases Ltd  1ALL ER 169. QBD
set down by Evans J. on the starting point for "run of the mill"
cases and in what circumstances a higher factor ‘B’ may succeed on
taxation. The particular case was a personal injury action but the dicta of the
decision is not limited to such actions:
"I approach the assessment on the following basis. I am advised
that the range for normal, i.e. non-exceptional, cases starts at 50%, which the
registrar regarded, rightly in my view, as an appropriate figure for "run
of the mill" cases. The figure increases above 50% so as to reflect a
number of possible factors - including the complexity of the case, any
particular need for special attention to be paid to it and any additional
responsibilities which the solicitor may have undertaken toward the client, and
others, depending on the circumstances - but only a small percentage of
accident cases results in an allowance over 70%. To justify a figure of 100% or
even one closely approaching 100% there must be some factor or combination of
factors which mean that the case approaches the exceptional. A figure above
100% would seem to be appropriate only when the individual case, or cases of
the particular kind, can properly be regarded as exceptional, and such cases
will be rare. I am aware that the figures cannot be precise, but equally in my
view the need for consistency and fairness means that some limits, however
elastic, should be recognised.
On the particular facts of this case Evans J allowed 75%.
In Johnson, the Plaintiff
had claimed 150%, the defendant contended that 60% was appropriate, and at
first instance on taxation the registrar had allowed 90%. In conclusion of
matters Evans J said that:
"this litigation is not above mid-scale in the degree of
complexity and difficulty, being neither straightforward, on the one hand, nor
as burdensome as many cases, particularly heavy ‘test’ cases,
Brush -v- Bower Cotton & Bower  4
ALL ER 741. QBD
J, expanding on the statement of Mr. Justice Evans in Johnson above, said:
"I certainly accept that, as one gets higher and higher above
75%, more and more it should be said that a case should be approaching the
RE a company K1989 (C No. 4081) 26th July, 1993. Unreported
commercial case in the Chancery Division concerning an action and counterclaim
seeking relief against Trustees. Indemnity costs were awarded. 60% Factor B was
claimed. The decision in Johnson
above suggests an uplift starting at 50% as being appropriate for ordinary
J upheld the 60% claimed and said:
March, 1991, this case required less attention than would have
"an ordinary case". The trustees needed to collect no evidence. They
had no case to prove or disapprove. They had to make discovery but there was
nothing exceptional about that. On the other hand, the sheer bulk of the
documents, 80 files as it became, would have introduced its own difficulties
J noted that he had a little doubt about the unreasonableness of the uplift
claimed, but as this was an award of indemnity costs those doubts were resolved
in favour of the paying party.
GENERAL NOTES ON COMMERCIAL CASES
actions, by their very nature, may involve large sums of money, the assessment
of vast volumes of documents and the consideration of complex facts. In these
and other circumstances, a factor ‘B’ in excess of the starting
point may be claimed and allowed on taxation for commercial actions. The actual
allowable factor ‘B’ must, of course, depend on the particular
facts of the case on taxation.
Example of Form 1 - PDF version Excel version
Example of Form 2 - PDF version Excel version