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Costs (Order 59)

This document discusses the meaning of costs under Order 59 of the Rules of Court 2012. It covers when costs follow the event, exceptions to this rule such as illegal contracts or misconduct, and the court's discretion in awarding costs. The document also examines situations where costs may be awarded against advocates or solicitors personally, such as commencing a suit for a bankrupt plaintiff. It outlines the basis of assessment for costs and various rules regarding costs payable in different situations.

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Hamizah Azhar
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313 views3 pages

Costs (Order 59)

This document discusses the meaning of costs under Order 59 of the Rules of Court 2012. It covers when costs follow the event, exceptions to this rule such as illegal contracts or misconduct, and the court's discretion in awarding costs. The document also examines situations where costs may be awarded against advocates or solicitors personally, such as commencing a suit for a bankrupt plaintiff. It outlines the basis of assessment for costs and various rules regarding costs payable in different situations.

Uploaded by

Hamizah Azhar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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WEEK 9: COSTS (ORDER 59)

INTRODUCTION
 Meaning of costs. See Sarjit Singh Khaira v Government of Sarawak [1995] 4
MLJ;
o the charges which the solicitor is entitled to make and recover as
remuneration; professional services; legal advice; conducting legal
proceedings etc.
o the party of this case not happy with the cost given by the registrar.
Whether the P may be awarded cost.
o Issue: adequacy of the allowance
o The party appeal to the HC. HC has discretionary power whether to
allow
 Not everything you can charge.
 Meaning of cost in the interpretation: order 59 rule 1(1)
 Contentious business = defamation (can argue in court and charge more)
 Non-contentious business= probate (can also file in court but can charge
less)
 Must relate your answer with term given in the table (page 268 of ROC 2012)
 Order 59 R2: application

AN ORDER FOR COSTS IS ESSENTIAL


 See the TABLE, Term and Effect;
 O.59, r. 2 (1) application;
 O.59, r.2 Court has discretionary power;
 O.59, r.3 (1) and (2) When cost to follow the event;

OBSERVE THE PRINCIPLE OF LAW


 See Re Elgindata Ltd (No.2) [1993] 1 All ER 232; Per Nourse J:
 Costs are in the discretion of the court;
 They should follow the event.

EXCEPTIONS TO THE RULE THAT COSTS FOLLOW THE EVENT

 Claim under an illegal contract. See Cheng Mun Siah v Tan Nam Sui [1980] 2
MLJ 269; (if you act for client for illegal contract, so you cannot claim cost.
Must make sure that the case is legal and lawful)
 Misconduct or neglect. See Chen Chow Lek v Tan Yew Lai [1983] 1 MLJ 170
(FC);
 See Mohd Salleh Samad v Zainodin Dongking [2001] 1 CLJ 139;
 See Anna Jong Yu Hiong v Government of Sarawak [1972] 2 MLJ 244;
 See Re Syed Alsagosf, Dec’d [1961] MLJ 150;
 See Petroliam Nasional Bhd & Anor v Cheah Kam Chiew [1987] 1 MLJ 25;

COURT IN EXERCISING ITS DISCRETION


 Offer of contribution and offer of settlement. See O.59, r.4 (a) and (b);
 Cost arising from misconduct or neglect. See O.59, r.5;
COSTS AGAINST THE ADVOCATE AND SOLICITOR PERSONALLY- SEE
EXAMPLE OF CASES

 Personal liability of solicitor for costs. See O.59, r,6 (1)-(7) ROC 2012;
o See Myers v Elman [1940] AC 282;
 When an action is unmaintainable. See Karpal Singh v Atip Ali [1987] 1 MLJ
291 (whether the court grant the cost or not);
 See Ridehalgh v Horsefield & Anor [1994] Ch 205;
 Conduct of litigation without due propriety. See Orchard v South Eastern
Electricity Board [1987] QB 565;
 Commencing a suit for plaintiff who is a bankrupt. See Mohd Yusof Awang &
Anor v Malayan Banking Berhad & Anor [1995] 4 MLJ 493;

COSTS AGAINST THE ADVOCATE AND SOLICITOR PERSONALLY- SEE


EXAMPLE OF CASES…

 Continuing with the action knowing that the party is a bankrupt. See Amos
William Dawe v D & C (Ltd) Bank [1981] 1 MLJ 230;
 No authority to act. See Syawal Enterprise Sdn Bhd & Anor v. Dayadiri Sdn
Bhd [1993] 2 MLJ 26;
 The defendant was unsound mind. See Yonge v Toyabe [1910] 1 KB 215;
 See Simmons v Liberal Opinion Ltd [1911] 1 KB 966;
 Failure to attend hearing. See Brown v Holloway Bros (London) Ltd reported
in [1960] MLJxvi; See MJH Sdn Bhd v Jurong Granite Industries Sdn Bhd
[1991] 3 CLJ 2885; Ong Jane Rebecca v Lim Lie Hoa [2008] 3 SLR 189.

BASIS OF ASSESSMENT (IMPORTANT)

 If you handle a case, and you want to claim amount from court, so, there are
few things that court will consider (7 elements which the court may consider
RULE 16(1)(a)-(g)
 O. 59, r.16 (1)-(6);
 See Macmillan Inc v Bishogate Investment Trust Ltd [1993]; see the
guidelines for an award of indemnity costs
 Cost payable to a solicitor by his own client. See O.59, r. 17(1)-(4);

COST
 Cost payable to a trustee out of trust fund. O.59, r. 18 (1) and (2);
 Cost payable for trial in the High Court. O. 59, r.19(1) and (2);
 Cost for interlocutory application (High Court). O.59, r.21; (in will in discretion
of the court)
 Cost on judgment without trial. See O.59, r. 22 (1)-(3) . See APPENDIX.
 Interest on cost. See O.59, r. 24 ROC 2012.
Negligence of lawyer, order 59 rule 6 involve cost

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