EXPLANATORY STATEMENT
Statutory Rules 1986 No. 26
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 previous increase was made on 1 November 1984. The present increases take into account increases in the Consumer Price Index, the Weekly Total Earnings Index, and the Average Weekly Ordinary Times Earnings Index from the September 1981 quarter to the June 1985 quarter. The Committee accepted 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 8.21%. 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 relate to witness’ fees and disbursements) for work done or services performed on or after 1 March 1986. 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 1986 No. 26, enacted by the Judges of the Supreme Court of the Australian Capital Territory, aims to address the need for updating the scale of costs chargeable by solicitors for litigious work. These amendments follow the recommendations of the Federal Costs Advisory Committee, which was established to advise on variations to the quantum of costs for solicitors within the Rules of the Court. The changes reflect increases in economic indicators such as the Consumer Price Index, the Weekly Total Earnings Index, and the Average Weekly Ordinary Times Earnings Index from September 1981 to June 1985. The policy objective is to ensure that the costs charged by solicitors are reflective of the economic conditions and changes in the compensation for employees and partners. The overall increase of 8.21% has been applied to the scale of costs, except for specific items related to witness fees and disbursements, for work done on or after 1 March 1986.
Scope and Application
The Amendment of the Rules of the Supreme Court of the Australian Capital Territory, as detailed in Statutory Rules 1986 No. 26, pertains specifically to the costs chargeable by solicitors for litigious work. These amendments were enacted following recommendations from the Federal Costs Advisory Committee, established to advise the Court on appropriate variations in the quantum of costs for solicitors. The changes are designed to adjust the scale of costs in accordance with economic factors such as the Consumer Price Index, the Weekly Total Earnings Index, and the Average Weekly Ordinary Times Earnings Index. The amendments apply to the Fourth Schedule to the Rules of Court, except for items 36 and 37 which relate to witness’ fees and disbursements, and to Order 4 Rule 6, unless those costs include the disbursement of a Court filing fee. The adjustments came into effect for work done or services performed on or after 1 March 1986, with an overall increase of 8.21% to reflect changes in economic conditions. This legislation is limited to the Australian Capital Territory and does not extend to other jurisdictions.
Key Provisions
The primary operative sections of the Statutory Rules 1986 No. 26 concern the amendments to the Rules of the Supreme Court of the Australian Capital Territory, specifically addressing the scale of costs chargeable by solicitors for litigious work (Fourth Schedule). The amendments were made to incorporate the recommendations of the Federal Costs Advisory Committee, which were approved by the Judges of the Court. The changes were calculated to reflect the increases in the Consumer Price Index, the Weekly Total Earnings Index, and the Average Weekly Ordinary Times Earnings Index from September 1981 to June 1985. The overall percentage increase in costs was fixed at 8.21%, and this increment was applied to the costs outlined in the Fourth Schedule (excluding items 36 and 37, which pertain to witness fees and disbursements) for work done or services performed on or after 1 March 1986. Additionally, the amendments affected the costs stipulated in Order 4 Rule 6, except for those involving the disbursement of a Court filing fee.
The Act imposes several obligations on solicitors and other parties involved in litigious work within the Australian Capital Territory. Firstly, it mandates that the updated scale of costs, reflecting the 8.21% increase, be applied to all eligible work performed on or after the specified date. This means that solicitors must ensure that their billing accurately reflects these new rates for any litigation-related services rendered post-1 March 1986. Additionally, the Act requires that any documentation or invoices issued for such work must detail the costs in line with the updated scale, ensuring transparency and compliance with the new regulatory framework.
Furthermore, the legislation carries specific consequences for non-compliance. While the Explanatory Statement does not explicitly detail offences, it is implicit that failure to adhere to the new cost scales could result in disputes, potential legal challenges, and the necessity for judicial intervention to rectify discrepancies. The penalties for such breaches, however, are not outlined in the Statement, suggesting that the primary focus of the Act is on procedural compliance rather than punitive measures. Nonetheless, any resulting legal actions or disputes could potentially lead to financial liabilities for the non-compliant party, as well as reputational damage.