This is an information booklet. It is not intended to …

1 This is an information booklet. It is not intended to be a legally binding documentnor is it an interpretation of details:The Taxing Masters Office1st floor Merchants House27/30 Merchants QuayDublin 8 Telephone: 01 888 6301 This booklet is produced by T he C ourts Service I nformation Office,Phoenix House,15-24 Phoenix Street North,Smithfield,Dublin :w w pril 2013a ninforma tionbookletTHE R OL E OF THE TAXING MAS TE R SOF THE S UP R E ME AND HIG H C OURTST axation of CostsCourts ServiceCourts ServiceFOREWORDTAXATION OF COSTSC osts are a significant aspect of modern day litigation and they are bound upwith the fundamental principle that of access to justice .The process oftaxation of costs plays a significant role in ensuring that this fundamentalprinciple is available to all irrespective of class or process ensuresthat only costs which are necessary and proper for the administration ofjustice are allowable in all cases that come before the Taxing Masters bulk of complaints about law and lawyers down through the ages havebeen, in essence, complaints over the cost of litigation.

2 Most proverbs thatadvise the avoidance of the law and lawyers, do so for economic satirist, Samuel Butler, said; The Law can like a purse in open CourtWhiles it condemns a less delinquent for it .The satirist still abounds and the legal profession is regularly at the receivingend of criticism from the political analyst for alleged , the process of taxation plays a very significant and dominantrole in maintaining the status quo and consequent confidence in the continuing diligence of the Taxing Masters ensures openness andtransparency in the system for the administration and assessment of ,it ensures, in all cases that come on for hearing, that there areallowable only costs,commensurate with actual work done, which wasnecessary and proper in the individual law and rules regulating costs are complex in the extreme.

3 It was inanswer to this difficulty that the idea of a further and more detailedinformation booklet on costs was information booklet containssome of the basic principles on the methodology used in assessing costs and itconcludes with a series of the most commonly asked questions. It should benoted that the booklet is for information purposes only and it is not intendedtotake the place of legal advice which should be sought when costs becomean issue of do hope that in some way this booklet will inform the reader of the basicprinciples with regard to the taxation of costs and I hope that it is somewhatinstructive in this vast, dynamic and ever expanding area of the FlynnTaxing MasteriTAXATION OF COSTSTHE ROLE OF THE TAXING MASTERSOF THE SUPREME AND HIGH COURTS This booklet is intended to give general information andguidance to members of the public about the taxation ofcosts.

4 It is not, nor is it intended to be, a complete orauthoritative statement of the law and practice of thetaxation of costs. The purpose and intention is to presentin a clear, simple and understandable language an outlineof the process of the taxation of information may be obtained from the Office of theTaxing Master. However, it should be noted that thecontents of this booklet or such further information shouldnot be construed as legal advice. In this context, partiesare advised to retain the services of a legal advisor or legalcosts the sake of simplicity he and him are usedthroughout this booklet to denote both male and is the taxation of costs?1 Category of costs3 Bill of Costs5 The steps involved in taxing costs7 What happens at the hearing?8 Following the taxation process10 Time limits11 The role of the Law Society11 Taxation of costs by County Registrars12 General information13 Frequently Asked Questions14iiiAP P E NDIC E S:ASummons/Notice to Tax30 BRequisition to Tax31 CCertificate of Taxation -O rdinary Costs of Action32 Certificate of Taxation -Solicitor and own client33DB ill of Costs34 ETaxation items from appendix W of the Rules of the Superior Courts 1986 ( items 30 to 33)35FE xtract from Statutory I nstrument Part 5No.

5 110 of 201336GE xtract from Courts and Court O fficers Act, 1995-Additional powers of Taxing Master of H igh Court37ivWHAT IS THETAXATION OFCOSTS?When a person or a company, otherwise known as aparty, incurs costs as a result of legal action they may havethose costs taxed. The taxation of costs is the assessmentand measurement of legal costs by an officer known as aTaxing Master. A Taxing Master provides an independentand impartial process of assessment of legal costs whichendeavours to achieve a balance between the costsinvolved and the services rendered. The term taxation ofcosts may be a little misleading but it is a term coinedmany decades ago and the process has nothing to do withtaxes or the Revenue IS THETAXINGMASTER?A Taxing Master performs a function of a judicial nature inrelation to costs.

6 The Court Officers Act, 1926 provides thatthere should be attached to the High Court the TaxingMasters Office. The position of the Taxing Masters and theTaxing Masters Office is now governed by the Courts(Supplemental Provisions) Act, 1961. The Eighth Schedulethereof provides at Section 19 that each of the TaxingMasters shall have and exercise the following duties;(a)such powers, authorities, duties and functions as arefor the time being conferred on or assigned to themby statute or rule of court;(b)unless and until otherwise provided by statute orrule or court - all such powers, authorities, dutiesand functions in relation to the High Court and the1 Supreme Court, as were formerly possessed, andperformed by the Taxing Masters of the formerSupreme Court of Judicature in the Republic ofIreland in relation to that Court.

7 (c)unless and until otherwise provided by statute orrule of court - all such powers, authorities andfunctions in relation to the Court of Criminal Appeal,the Chief Justice and the President of the High Court,as were immediately before the operative datepossessed or exercised by them in relation to theexisting Court of Criminal Appeal, the existing ChiefJustice and the existing President of the High Courtrespectively;(d)such other powers, authorities, duties and functionsas were immediately before the passing of the Act of1924 vested or imposed by law in or on the severalTaxing Masters of the former Supreme Court ofJudicature in the Republic of Ireland; and(e)the duty of taxing any costs to be received, allowedor paid to a solicitor in respect of businessundertaken on or after the first day of October 1957,in relation to the exercise by a local authority oftheir powers under the Labourers (Ireland) Acts 1883to 1958.

8 His duty is to assess the fair and reasonable remunerationthat a party has to pay to the other side. Currently, thereare two Taxing Masters and their offices are located at 1stfloor, Merchants House, 27/30 Merchants Quay, Dublin ARE COSTS TAXED?Usually costs are taxed at the conclusion of a case but thisis not always so and a Court may award costs in respect ofcertain applications prior to the actual conclusion of thecause or matter before party claiming costs, usually the successful Plaintiff orDefendant, must demonstrate to the satisfaction of theTaxing Master that such costs as are incurred were properand reasonable in all the circumstances. The Taxing Masteris guided by wide experience, gained through hisprofessional background as a solicitor and also in OF COSTSFor the purposes of this booklet, there are two maincategories of costs; (a)Party and party costs, and(b)Solicitor and own client costs.

9 PARTY AND PARTY COSTS:Party and party costs cover all costs, charges and expensesreasonably incurred by one party for the purposes of therelevant proceedings which the other side is obliged topay. There may be costs in an action that are not allowableas party and party costs. The party claiming costs mustjustify why they were incurred and why those costs should3be allowed. The party and party costs may not cover thewhole of the costs incurred in an action and the courtshave held that: In costs between party and party one does notget full indemnity for costs incurred against theother. The principle to be considered in relationto party and party costs is that you are boundin the conduct of your case to have regard tothe fact that your adversary may in the endhave to pay your costs. You cannot indulge ina luxury of payment.

10 All such costs, charges and expenses which appear to theTaxing Master to be necessary and proper in pursuit of theattainment of justice or for enforcing or defending therights of a person areessentially allowable AND CLIENT COSTS:Solicitor and client costs are those costs that a client isobliged to pay his solicitor which are not recoverable partyand party costs. The courts have held that the following distinction is madebetween party and party and solicitor and client costs in anaction: The costs of the Plaintiff as against the partydo not mean all the costs he has incurred butall the costs he has incurred by the act of the4defenda nt. Tha t i s the di fference between pa rtya nd pa rty a nd soli ci tor a nd cli ent costs - e. g. i tma y be rea sona ble to ha ve severa lconsulta ti ons but i t does not follow he i s to getthem a ll a ga i nst the other pa rty.