Up to now the unsuccessful party to litigation paid 6% duty in High and Circuit Courts on the amount of a taxed Bill of Costs. This 6% was applied to the Solicitor's fees, the witness's fees and expenses and indeed, the VAT (a clear example of double Taxation!). The Taxations are presided over by a Taxing Master in the High Court, and the appropriate County Registrars in the Circuit Court.
Earlier this year the new fees Order for the High and Circuit Court came into being. The fees for the Circuit Court have now been increased to 9% (a 50% increase) and the fees in the High Court to 8% (a 33% increase). Effectively, this means that the party who has to pay costs following litigation, when faced with a threat of Taxation, must factor in for consideration that, should a Plaintiff's bill go to Taxation, a 9% premium will have to be paid on top in a Circuit Court case, for the privilege of allowing the bill be independently assessed.
In effect the unsuccessful party will have to weigh up what it might consider an excessive bill against the Court duty payable. It is my belief that this will, in fact, increase the amount of costs that will be paid in litigation matters. One would also have to ask why the stamp duty rate is different in the two courts.
This is a clear example of a revenue stream being exploited by the Government, at the cost of Insurance companies and unsuccessful litigants!
John Buckley
