Matrix News Blog

Taxation of Legal Costs in South Africa

Legal Cost Consultants - The Taxation of Legal Costs in South Africa:

When you have won your case and a cost order is granted in your favour, a bill of costs needs to be drafted. 

In practice most attorneys appoint the services of an experienced cost consultant (experts in the field of legal costs) to draft the bill of cost. 

Once the bill is drafted and finalised it needs to be served on the unsuccessful party (paying party, losing party). The unsuccessful party (paying party, losing party) may oppose the bill of cost.

If the parties cannot settle the matter, it needs to be set down before the taxing master for taxation (“enquiry” to determine the amount payable). The taxing master, after hearing arguments from both sides, decides which costs are recoverable, and payable by the losing party.

When the taxation is finalised, the taxing master signs and stamps a certificate known as an “allocator”.The allocator stipulates the total payable by the losing party and can be used to enforce the payment of legal costs by way of a Writ of Execution.

 

Magistrates’ Court and High Court tariffs:

The Magistrate’s and Regional Courts (“Lower Courts”) have jurisdiction to adjudicate matters with a monetary value of up to R400,000.00. The High Court on the other hand has no monetary limit and can be approached for most matters.

In the Lower Courts Rule 33 of the Magistrate’s Court Act applies and in the High Court Rule 70 of the Uniform (High Court) Rules apply. 

These Rules sets out specific tariffs which must be charged. The charges allowed in the Lower Courts are substantially lower than the charges allowed in the High Court.

In Magistrates’ Courts, travelling and advocate fees are not normally recoverable unless this is specifically ordered by the Magistrate; whereas in the High Court these charges are recoverable.

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