EXPLANATORY STATEMENT
Statutory Rules 1989 No. 18
Issued by the Authority of the Judges of the Supreme Court of the Australian Capital Territory
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 increase was made on 1 September 1988, that was an increase of 1.6% of the costs which were published in Statutory Rules 1988 No.24. The present increase takes into account increases in the Consumer Price Index between 31 March 1988 and 30 June 1988 and the increases in Award Rates of Pay Index (A.C.T.) as between 31 March 1988 and 26 July 1988. The Committee continued to accept that 39% of solicitors’ gross fee costs was 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 1.8%. The 1.8% increase has also been applied to the costs provided for in Order 4 rule 6 as well as the increased disbursement of a Court filing fee.
The total increase on the costs published in Statutory Rules 1988 No.24 are as a resultincreased by 3.4%.
Overview
The Statutory Rules 1989 No. 18, issued under the authority of the Judges of the Supreme Court of the Australian Capital Territory, amends the Rules of the Supreme Court of the Australian Capital Territory to adjust the scale of costs chargeable by solicitors for litigious work. This amendment responds to the recommendations of the Federal Costs Advisory Committee, which was established to advise on variations in the quantum of costs for solicitors. The purpose of this adjustment is to account for increases in the Consumer Price Index and the Award Rates of Pay Index, ensuring that the costs reflect current economic conditions. The overall percentage increase is set at 1.8%, which also applies to the costs outlined in Order 4 Rule 6 and the increased disbursement of a Court filing fee, resulting in a total increase of 3.4% over the previously published costs in Statutory Rules 1988 No. 24.
This legislative update aims to ensure that the costs charged by solicitors remain aligned with economic factors, thereby maintaining the fairness and practicality of the legal fees within the Australian Capital Territory. The policy objective is to provide a transparent and structured approach to cost adjustments, taking into account both inflation and changes in remuneration rates, which directly impact the financial burden on legal practitioners and their clients.
Scope and Application
The amendment to the Rules of the Supreme Court of the Australian Capital Territory concerns the adjustment of costs chargeable by solicitors for litigious work. This amendment applies to solicitors who provide litigious services within the jurisdiction of the Supreme Court of the Australian Capital Territory. The changes are specifically aimed at updating the scale of costs to reflect current economic conditions, as recommended by the Federal Costs Advisory Committee. This committee's role is to advise on appropriate variations in the quantum of costs for solicitors, ensuring that the fees are aligned with economic indicators such as the Consumer Price Index and the Award Rates of Pay Index for the A.C.T. The amendment also extends to increasing the fixed disbursements, including the Court filing fee. The amendment does not specify any exclusions or exemptions, meaning it applies broadly to all relevant solicitors operating under the Supreme Court of the A.C.T. The application of these amendments is subject to the overarching Rules of the Supreme Court, which can be further defined or modified through subordinate instruments.
Key Provisions
The primary sections of this amendment to the Rules of the Supreme Court of the Australian Capital Territory (sections 1 and 2) are focused on updating the scale of costs that solicitors can charge for their litigious work. These amendments are in response to recommendations from the Federal Costs Advisory Committee, which was established to provide advice on the appropriate quantum of costs for solicitors. The increase in costs is based on the Consumer Price Index and the Award Rates of Pay Index for the A.C.T. between specified dates. Specifically, the costs have been adjusted to reflect a 1.8% increase, which has been applied to both the general costs and the disbursements such as the Court filing fee.
The obligations imposed by these amendments are primarily on solicitors who undertake litigious work within the jurisdiction of the Supreme Court of the Australian Capital Territory. They must now charge clients according to the updated scale of costs as specified in the amendments. This includes ensuring that the costs charged reflect the new rates for both the solicitors’ fees and any disbursements, such as the increased Court filing fee. The amendments also require solicitors to maintain accurate records of the costs charged to clients to ensure compliance with the updated rates.
The consequences for breach of these provisions are not explicitly stated within the Explanatory Statement. However, in the context of legal practice, failure to comply with the updated costs scale could potentially lead to complaints and disciplinary action by the Supreme Court or relevant professional bodies. Although specific penalties are not outlined in this document, breaches of court rules and professional conduct can typically result in sanctions such as fines, reprimands, or even suspension or revocation of a solicitor’s practising certificate. These outcomes would depend on the severity and circumstances of the breach, as well as the findings of any investigations or hearings conducted by the relevant authorities.