EXPLANATORY STATEMENT
Statutory Rules 1987 No. 24
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 October 1987. The present increase takes into account increases in the Consumer Price Index between 31 March 1987 and 30 June 1987 and the increases in Award Rates of Pay Index (A.C.T.) as between 31 March 1987 and 30 June 1987. 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 3.3%. The Fourth Schedule to the Rules of Court (except items 36 and 37 which relates to witness’ fees and disbursements) has been re-drawn to incorporate this latest increase as well as all increases made to the Schedule since 1 November 1984. The new Fourth Schedule applies to work done or services performed on or after 1 June 1987. The 3.3% 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.
Order 65 rule 41 has also been amended to allow for the same rate for a copy of a page of document as is allowed in the Fourth Schedule.
Overview
The Statutory Rules 1987 No. 24, issued by the authority of the Judges of the Supreme Court of the Australian Capital Territory, were enacted to amend the Rules of the Supreme Court, particularly addressing the scale of costs chargeable by solicitors for litigious work. The amendments were introduced to align with recent recommendations from the Federal Costs Advisory Committee, which was tasked with advising on variations in the quantum of costs for solicitors. The policy objective of these amendments was to ensure that the scale of costs reflects contemporary economic factors, such as increases in the Consumer Price Index and Award Rates of Pay Index, while also considering the distribution of costs among employees' wages, overheads, and partners' salaries. These changes were deemed necessary to maintain the fairness and relevance of the costs structure in legal proceedings.
This legislative amendment addresses the gap in the existing rules by incorporating a 3.3% increase in costs, taking into account inflation and wage increases, and re-drawing the Fourth Schedule to reflect all cost adjustments since 1984. The new schedule applies to work done on or after 1 June 1987, ensuring that the costs charged by solicitors are reflective of current economic conditions. Additionally, the amendments ensure consistency in the rates for document copies as stipulated in the Fourth Schedule, thereby maintaining uniformity in the application of these rules.
Scope and Application
The amendments to the Rules of the Supreme Court of the Australian Capital Territory, as outlined in Statutory Rules 1987 No. 24, primarily affect solicitors who engage in litigious work within the jurisdiction of the Australian Capital Territory. This amendment is a direct response to the recommendations of the Federal Costs Advisory Committee, which was established to advise on the quantum of costs for solicitors' services. The changes aim to adjust the scale of costs that solicitors can charge, reflecting recent economic factors such as the Consumer Price Index and the Award Rates of Pay Index for the Australian Capital Territory. The overall percentage increase of 3.3% has been applied to the costs outlined in the Fourth Schedule, except for specific items related to witness' fees and disbursements, and Order 4 rule 6, which includes the disbursement of a Court filing fee. These amendments apply to any work done or services performed on or after 1 June 1987, thereby ensuring that the new cost structure is uniformly adopted across the jurisdiction. The amendments do not specify exclusions or exemptions but are designed to align with broader economic considerations, ensuring that the costs charged by solicitors remain fair and reflective of current economic conditions.
Key Provisions
The main operative sections of this amendment to the Rules of the Supreme Court of the Australian Capital Territory (sections referenced in parentheses) include the Fourth Schedule, which outlines the scale of costs chargeable by solicitors for litigious work. This schedule has been updated to reflect a 3.3% increase in costs, taking into account the Consumer Price Index and the Award Rates of Pay Index for the ACT as of 30 June 1987. The new schedule applies to work done or services performed on or after 1 June 1987, and the increase has also been applied to certain costs in Order 4 rule 6, excluding those that include the disbursement of a Court filing fee. Additionally, Order 65 rule 41 has been amended to align the rate for a copy of a page of document with the rates in the Fourth Schedule.
This Act imposes several obligations on the parties involved in litigation, most notably the requirement for solicitors to adhere to the updated cost schedule when billing for litigious work. This means that solicitors must adjust their billing practices to reflect the new rates and ensure that they are not overcharging or undercharging clients based on outdated information. Furthermore, the Act requires that all work done or services performed on or after the effective date of the amendment be billed in accordance with the new rates.
Failure to comply with the provisions of this Act can result in various civil and criminal consequences. While the specific penalties are not detailed in the text, it is likely that non-compliance could lead to disputes between clients and solicitors over billing discrepancies, as well as potential investigations and legal action for those found to be wilfully disregarding the updated cost schedule. In extreme cases, criminal charges may be brought against individuals who deliberately flout the provisions of the Act, although this is less common in matters related to legal fees and costs.