District Courts Rules 2009

4.6 Increased costs and indemnity costs

• 4.6.1 Despite rules 4.2 to 4.5, the court may make an order—

  • (a) increasing costs otherwise payable under those rules (increased costs); or

  • (b) that the costs payable are the actual costs, disbursements, and witness expenses reasonably incurred by a party (indemnity costs).

  4.6.2 The court may make the order at any stage of a proceeding in relation to any step in the proceeding.

  4.6.3 The court may order a party to pay increased costs if—

  • (a) the nature of the proceeding or the step in the proceeding is such that the time required by the party claiming costs would substantially exceed the time allocated under band C; or

  • (b) the party opposing costs has contributed unnecessarily to the time or expense of the proceeding or step in the proceeding by—

    • (i) failing to comply with these rules or a direction of the court; or

    • (ii) taking or pursuing an unnecessary step or an argument that lacks merit; or

    • (iii) failing, without reasonable justification, to admit facts, evidence, or documents or accept a legal argument; or

    • (iv) failing, without reasonable justification, to comply with an order for discovery, notice for further particulars, notice for interrogatories, or other similar requirement under these rules; or

    • (v) failing, without reasonable justification, to accept an offer of settlement whether in the form of an offer under rule 4.10 or some other offer to settle or dispose of the proceeding; or

  • (c) the proceeding is of general importance to persons other than just the parties and it was reasonably necessary for the party claiming costs to bring the proceeding or participate in the proceeding in the interests of those affected; or

  • (d) some other reason exists that justifies the court making an order for increased costs despite the principle that the determination of costs should be predictable and expeditious.

  4.6.4 The court may order a party to pay indemnity costs if—

  • (a) the party has acted vexatiously, frivolously, improperly, or unnecessarily in commencing, continuing, or defending a proceeding or a step in a proceeding; or

  • (b) the party has ignored or disobeyed an order or direction of the court or breached an undertaking given to the court or another party to the proceeding; or

  • (c) costs are payable from a fund, the party claiming costs is a necessary party to the proceeding affecting the fund, and the party claiming costs has acted reasonably in the proceeding; or

  • (d) the person in whose favour the order of costs is made was not a party to the proceeding and has acted reasonably in relation to the proceeding; or

  • (e) the party claiming costs is entitled to indemnity costs under a contract or deed; or

  • (f) the party claiming costs is a defendant and—

    • (i) the defendant served the defendant's response in accordance with rules 2.12 and 2.13 but the plaintiff did not serve the plaintiff's information capsule within the 30-day period stated in rule 2.14.1; or

    • (ii) the defendant served the defendant's information capsule in accordance with rule 2.15 but the plaintiff did not pursue the plaintiff's claim under rule 2.17 within the 90-day period stated in rule 2.17.4; or

  • (g) some other reason exists that justifies the court making an order for indemnity costs despite the principle that the determination of costs should be predictable and expeditious.

  Compare: SR 1992/109 r 47C

  Rule 4.6.3(b)(iv): amended, on 1 February 2012, by rule 6 of the District Courts (Discovery, Inspection, and Interrogatories) Amendment Rules 2011 (SR 2011/347).