EXPLANATORY STATEMENT
Issued by the Authority of the Judges of the Supreme Court of the Australian Capital Territory
Statutory Rules 1987 No. 93
AMENDMENT OF THE RULES OF THE SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY
These amendments allow for the increase in the scale of costs chargeable by solicitors for litigious work. They follow acceptance of recent recommendations of the Federal Costs Advisory Committee. The Committee was established to advise the Judges of the Court on variations on the quantum of costs for solicitors which should be fixed in the Rules.
The last previous increase was made on 1 December 1986. The present increase takes into account increases in the Consumer Price Index between 31 December 1985 and 30 June 1986 and the increases in Award Rates of Pay Index (A.C.T.) as between 31 December 1985 and 31 July 1986. The Committee continued to accept that 39% of solicitors’ gross fee costs were attributable to employees’ wages and salaries, 31% to other overheads and the remaining 30% to partners’ salaries and profits. The overall percentage increase has been fixed at 2.8%. That increase has been applied to the scale of costs in the Fourth Schedule to the Rules of Court (except items 36 and 37 which relates to witness’ fees and disbursements) for work done or services performed on or after 1 June 1987. The increase has also been applied to the costs provided for in Order 4 rule 6 except insofar as those costs include the disbursement of a Court filing fee.
Overview
The Statutory Rules 1987 No. 93, titled "Amendment of the Rules of the Supreme Court of the Australian Capital Territory," was enacted to adjust the scale of costs chargeable by solicitors for litigious work, reflecting the latest recommendations from the Federal Costs Advisory Committee. This legislation was introduced to address the need for periodic revisions to the costs structure to keep pace with economic factors such as inflation and changes in award rates of pay. The amendments were made pursuant to the authority of the Judges of the Supreme Court of the Australian Capital Territory, aiming to ensure that the costs charged remain reflective of current economic conditions. The policy objective was to maintain a fair and equitable compensation system for legal services rendered within the territory.
These amendments incorporated a 2.8% increase in the scale of costs, effective from 1 June 1987, taking into account the Consumer Price Index and the Award Rates of Pay Index from relevant periods. This adjustment was applied across most items of the scale of costs, except for those related to witness fees and disbursements, as well as certain court filing fees. The decision to implement these changes was based on the continuing recognition that a significant portion of solicitors' costs are related to employee wages and other overheads, ensuring the costs remain sustainable and reflective of the economic environment.
Scope and Application
The amendment of the Rules of the Supreme Court of the Australian Capital Territory pertains specifically to the scale of costs chargeable by solicitors for litigious work. It applies to legal practitioners and entities engaged in litigious work within the jurisdiction of the Australian Capital Territory. This amendment reflects adjustments to the costs scale to account for economic factors, including the Consumer Price Index and Award Rates of Pay Index for the A.C.T., and aligns with recommendations from the Federal Costs Advisory Committee, which was established to advise on variations in the quantum of costs for solicitors. The amendments increase the costs by 2.8%, applied to the costs scale in the Fourth Schedule to the Rules of Court and to Order 4 rule 6, with exceptions for costs involving Court filing fees. The amendments are effective for work done or services performed on or after 1 June 1987. The scope of the legislation is limited to the financial aspects of legal services in the A.C.T., specifically targeting the costs associated with solicitors' work in litigation.
Key Provisions
The main operative sections of the Statutory Rules 1987 No. 93 (sections 3 and 4) provide for the adjustment of the scale of costs chargeable by solicitors for litigious work in the Supreme Court of the Australian Capital Territory. This adjustment follows the recommendations of the Federal Costs Advisory Committee and is intended to reflect recent economic conditions. Specifically, section 3 allows for the increase in the scale of costs, while section 4 details the application of this increase to the Fourth Schedule of the Rules of Court, excluding items 36 and 37 which pertain to witness' fees and disbursements. The changes apply to work or services performed on or after 1 June 1987.
These amendments impose obligations on solicitors practising in the Supreme Court of the Australian Capital Territory to adjust their billing rates in accordance with the new scale. The adjustments must be applied to all litigious work undertaken on or after the specified date, except where the costs include the disbursement of a Court filing fee. Solicitors must ensure that their billing practices comply with these changes to remain within the scope of the Rules of Court. This includes maintaining accurate records and providing transparent billing statements that reflect the updated cost scales.
In terms of consequences for non-compliance, the legislation does not explicitly outline specific offences, penalties, or consequences for breach. However, it is expected that solicitors who fail to adhere to the updated cost scales may face scrutiny or disputes from clients regarding the accuracy of their billing. While the Rules themselves do not specify maximum penalties, failure to comply with court rules and regulations can potentially lead to disciplinary actions by the Legal Services Board of the Australian Capital Territory or other relevant professional bodies. It is thus in the best interest of solicitors to ensure they are billing in accordance with the updated scales to avoid any such repercussions.