COSTS — application for a specified gross sum costs order — where trustees appointed to the bankrupt estate of the plaintiff — where the in-house solicitor rule applies — whether specified gross sum costs order should be made
Quick Take
1A specified gross sum costs order under s 98(4)(c) of the Civil Procedure Act 2005 (NSW) is appropriately made in litigation about costs assessment, where requiring formal assessment would generate disproportionate expense, delay and aggravation antithetical to the overriding purpose of the Civil Procedure Act.
2An incorporated legal practice with numerous employed solicitors may recover professional costs for work performed by those employed solicitors on a party/party basis; the in-house solicitor rule as confirmed in Bell Lawyers Pty Ltd v Pentelow and Birketu Pty Ltd v Atanaskovic does not preclude recovery where the director/principal does not charge for his own work.
3In quantifying a specified gross sum, the court adopts a broad-brush approach informed by bills of costs and fee notes, and may apply a discount of 10–30% from total costs claimed, though it retains discretion as to whether and how much discount to apply.
