The question of costs can be fundamental in South African legal processes since it decides who would be accountable for paying the costs incurred during the litigation. A cost order is a judgment the court makes about the payment of costs; it may be given in a number of different ways.

Party and Party Costs

In South African judicial procedures, party and party costs, commonly called "ordinary costs," are the most typical cost order. The prevailing party in litigation receives these costs to pay for their reasonable legal expenses. The litigants taking part in the lawsuit are called "parties."

An example of party and party costs in a civil dispute between Company A and Company B over a breach of contract. If the court finds in favour of Company A, the court may order Company B to pay the party and party costs incurred by Company A during the litigation.

Attorney and Client Costs

The costs associated with attorneys and clients, commonly called "own client costs," go beyond party and party expenditures. These expenses cover the actual expenses incurred by the victorious party, as determined by the parties and their attorneys. In some situations, such as when the opposing party acted unreasonably or in bad faith, the court may grant attorney and client costs.

An example of attorney and client costs would be if a Plaintiff brings a defamation case against an individual and the Defendant's legal team unreasonably prolongs the trial with unnecessary motions. The court may order the Defendant to pay the Plaintiff's attorney and client costs in addition to the party and party costs.

Wasted Costs

A party incurs wasteful costs when their attorneys cause them to spend money they shouldn't have to. The party receiving these costs is not the party themselves but rather the party's legal representative.

An example of the wasted cost would be in a criminal trial. Suppose the defence attorney makes a series of baseless objections, leading to unnecessary delays and increased expenses. In that case, the court may order the attorney to bear the wasted costs incurred by the prosecution.

Attorney-Own Client and Client-Own Attorney Costs

These kinds of cost orders, which concern disputes over legal fees or services between an attorney and their client, are extremely unusual. Typically, taxation, which entails an assessment by a taxing master to establish fair and acceptable expenses, is used to resolve them.

An example would be if a client believes that their attorney charged exorbitant fees for services rendered during a divorce case, the court may order taxation to evaluate the reasonableness of the attorney's bill.

Conclusion

In South African law, cost orders are significant in assessing the financial effects of legal processes. Both plaintiffs and legal professionals must comprehend the various cost orders. Party and party fees are the norm and pay for reasonable costs associated with the action; attorney and client costs may be granted in unusual cases. Furthermore, wasted costs make legal counsel liable for extra expenditures brought on by their conduct. Last but not least, attorney-own client and client-own attorney costs come into play when lawyers and their clients disagree about legal fees. The ability to traverse the legal system with clarity and caution depends on thoroughly understanding these cost orders.

Written by Celesté Snyders, SchoemanLaw