
A key focus in litigation is keeping costs low and being cautious about the Court’s scrutinization of incurred costs. This is particularly important when a party is seeking their costs to be paid by the other side. Costs will naturally be raised with the complexity of a matter due to retaining legal counsel, the extent of the advice given and court fees.
The Court aims to keep a party’s costs minimal, as shown in the case of Schwarze v State of South Australia (No 2) [2023] SASC 167. The Applicant in this case retained multiple legal counsel, expert witnesses and investigators. The costs for multiple legal counsel were increased given that the Applicant retained Counsel interstate. The Court will question whether the role of multiple Counsel could be limited to one and it must be reasonably necessary for the adequate presentation of the case if there are multiple Counsel.
The Court will have regard to several factors when an applicant makes a claim for costs. The Court will assess whether the costs were reasonably incurred by considering the circumstances of the matter, the complexity of the claim and whether extensive investigation is warranted to present the case brought before the Court. The settlement amount is also a useful factor for the Court to determine whether the actions of the Applicant incurring costs are reasonable.
The Court is of the view that although most costs are reasonably necessary to present a party’s case, most matters evolve organically over time. Therefore, it is within the interests of all parties to settle the matters efficiently. At Scanlan Carroll, we aim to settle matters on a commercial basis to ensure the most effective outcome for the parties. If you require any assistance with settling a matter prior to heading towards litigation, please contact our office.
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