LEGALCOSTS
RECOVERYGUIDELINES
Effective3September2012
TransportAccident Commission
60BroughamStreetGeelong 3220 (DX 216079 orPO Box742, Geelong)
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HISTORY
Version1.3
Date 13 February2013
Status:Approved
Version1commenced 3 September2012.
Version1.1(1October2012)replaced“Compliance”with“ForensicsGroup”inparagraph
2.2
Version1.2(19 November2012):
added“SeniorLegalManager– Interstateand Recoveries”to paragraph2.2, and
amended “6”to “7” inline3 ofparagraph2.4.
Version1.3(13 February2013):
removed “SeniorManager– ForensicsGroup”fromparagraph2.2
added“OperationsManager–ClaimsLegal”and“VictorianandInterstateCommon
LawManagerORSerious InjuryandImpairmentManager” toparagraph 2.2
replaced “LegalServices and Assurance”with “Legal Assurance”inparagraph 2.2 amended “four”to “five”inline 2 ofparagraph 2.4
amended “3”to “4” and“7” to “8”in line3 ofparagraph 2.4.
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Preamble
In compliance with the State of Victoria Model Litigant Guidelines and its overarchingobligationspursuanttotheCivilProcedureAct2010,theTACseeksto ensureclarityandcertaintyinthemanagementofitslegalcostsrecoveryrights.The TAC promotes consistency, fairness and transparency in its interpretation and application of its legalcostsrecoveryguidelines.
Thepurpose of these Legal Costs RecoveryGuidelines ( the ‘Guidelines’) is to
outlinethe approach tobetaken bytheTAC in relation to:
1. Asprovidedforinsection93(12)oftheTransportAccidentAct1986(Vic)
(“theAct”), theseekingof an order forcostsfollowing:
•Thedismissalofaperson’sapplicationforthecourttodeterminethatthe person has a serious injury pursuant to s.93(4)(d) of the Act, or the withdrawalofthatapplicationbythepersonpriortoorafterthehearingof the proceedinghas commenced;
•Thedismissaloftheperson’sactionfordamagestobeawardedpursuant tos.93oftheAct,orthewithdrawalofthatactionby thepersonpriortoor after thehearingof the proceedinghas commenced.
2. Thefactorstakenintoaccountindeterminingwhethertorecoveruponsuchan order; and
3. Cost orders arising under sections 79(2) and (3)oftheAct in respect of administrativereviewproceedingsattheVictorianCivilandAdministrative Tribunal.
NOTES:
TheseGuidelinesapplytoanyoftheeventsoccurringinparagraph1and3aboveonorafter3
September2012.
IntheseGuidelines,theTACclientisreferredtoasthe“person”.
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PartA-Applicationbyapersonforthecourttodeterminethatthepersonhasaseriousinjurypursuanttos.93(4)(d)oftheAct,and/oranactionfordamagestobeawardedpursuanttos.93ofthe Act
1.COSTSORDER
1.1TheTAC willseek an order forcosts1following:
•Thedismissalofaperson’sapplicationforthecourttodeterminethatthe personhasaseriousinjurypursuanttos.93(4)(d)oftheAct,orthewithdrawal of that application by the person after the hearing of the proceeding has commenced;
•Thedismissaloftheperson’sactionfordamagestobeawardedpursuantto s.93oftheAct,orthewithdrawalofthatactionbythepersonafterthehearing ofthe proceedinghas commenced.
1.2TheTACmayseekanorderforcosts,oracontributioninrelationthereto, should a person withdraw their application or action prior to the commencement of the hearing.
1.3Fortheavoidanceofdoubt,thereferenceto“hearing”inparagraphs1.1and1.2 is to thetrial stageof theproceedings.
1.4TheCourtretainsthediscretionastowhetherornottomaketheorder(s)
referred to in paragraphs1.1 and 1.2 ofthis Part (ss.93(12)of theAct).
1 TheTACwillnotseekcertificationofcounsels’feeswhenapplyingforacostsorder,but will leavethisissuetobedeterminedbytheCostsCourtindefaultofagreementbetweenthe parties,shouldthe TACsubsequentlydecidetorecoveruponanorder obtained.
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2.RECOVERY
2.1The TAC’s Costs Recovery Committee (“CRC”), on behalf of the TAC, determinesthe questionwhethertheTACwillseekrecoveryfollowingthe obtainingof a costsorderagainstaperson.
2.2TheCRCmeetsonan“asneeds”basisandisconstitutedby peopleholdingthe followingpositions at theTAC:
Senior Manager – Resolution (also theConvenor) Senior Manager -Policy,ServiceReview
Senior Manager –LegalAssurance
Senior Manager – Recoveryor Senior Manager-Independence
SeniorLegal Manager–CostsProsecutions
SeniorLegal Manager–Interstate and Recoveries
Operations Manager – ClaimsLegal
Victorian andInterstateCommon Law ManagerorSeriousInjuryand
Impairment Manager
IfanyoftheabovemembersareunabletoattendaCRCmeeting,heorshemay nominateadelegate to attend.
2.3Inadditiontothememberslistedabove,anindividual,selectedfromapanelof personsnotpreviouslyorcurrentlyemployedbytheTAC,isalsoamemberof theCRC. Thepanel willconsist of individuals:
•appointedbytheChiefExecutiveOfficeroftheTACtobeamemberofthe
CRCon such terms andconditions as areagreed between the parties;and
•currentorretiredAustralianlawyers(asdefinedintheLegalProfessionAct
2004(Vic))ofnot less than 10years standing.
2.4CRCmeetingswillproceedprovidedthereisaquorum.Aquorumrequiresat
leastfivemembers to bein attendance at anyonetime, comprising:
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•atleast4ofthe8members(ortheirnominateddelegates,ifany)referredtoin paragraph 2.2– oneof whommust be theConvenor; and
•an individual fromthe panel referred to in paragraph 2.3.
2.5EmployeesoftheTACincludingthoseinvolvedintheperson’sclaimmaybe invited by the CRC to attend meetings and/or provide information about individualmatterstheCRCis considering.Suchinviteesarenotmembersof the CRC.
2.6Indeterminingwhethertoseekrecoveryuponacostsorder,theCRCwill consider anumber of factors includingbut notlimited to:
•The findings offactmadebythe court in the courseof theproceedings;
•Whetherthepersonagainstwhomthecostsorderhasbeenobtainedhasthe capacitytomeet theorder;
•The youth,age, intelligence,physicalhealth, mentalhealthoranyspecial infirmity of the person, including whether the person isrepresentedby a Litigation Guardian;
•Whethertheconsequencesofseekingrecoveryinrelationtothepersonwould beundulyharsh and oppressive;
•Theobjects ofthe Act, asoutlined in section 8 of theAct;
•Theneed to promotea consistent approach to therecoveryof costs;
•Therequirementtopromoteclarityandcertaintyinthemanagementofthe
TAC’scostsrecoveryrights in accordancewith model litigant guidelines;
•Theextentofcompliancebythepersonortheperson’slegalrepresentative withthe provisionsoftheCivilProcedureAct2010(Vic)andRulesand RegulationsmadepursuanttothisandotherrelevantActs(e.g.SupremeCourt GeneralCivilProcedureRules), duringthepre-trialandtrialstageofthe proceedings;
•Theextentofcompliancebythepersonortheperson’slegalrepresentative with Court Orders madeduringthe pre-trial and trial stageofthe proceedings;
•Whether,inrelationtoanactionfordamagestobeawardedpursuanttos.93
oftheAct, any judgmentobtainedbythepersonfallsbelowthestatutory
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thresholds fordamages;and
•Whether,ifasaresultoftheCRC’sdeliberationsitisdeterminedthatcosts oughttoberecovered,thosecostsshouldincludebothprofessionalcostsand disbursements, or onlythelatter.
Theapplicabilityofandweighttobegiventotheseandotherfactorswilldepend on the particularcircumstances ofeachcase.
2.7TheCRCwilldeterminewhetherornottoseekrecovery upontheordernolater thanaperiodofninety(90)daysfromthedateoftheorder.Theperiodof90 days specified is to allow sufficient time for:
(a)the expiryof anyappeal period inrelation to the subject proceedings;
(b)suchenquiriestobemadeasarenecessarytoenabletheCRCtobeina position to properly consider the factors referred to in the previous paragraph;
(c)if deemed necessary by the TAC, an assessment of its costs and disbursements relatingtothesubjectproceedingstobeundertakenbyan external costs lawyer or consultant; and
(d)subsequenttotheoccurrenceofthefactorsspecifiedinparas.2.7(a)to(c)
inclusive,the CRC to beconvened to determine theissue.
3.INTERLOCUTORY,ADJOURNMENTAPPLICATIONSAND OFFERS OF COMPROMISE
3.1TheCRChasnoinvolvementinthedeterminationofcostrecoveryissuesin relation to this section ofPart A of the Guidelines
3.2TheTACwillseekanorderforcostsarisingoutofahearingwhichoccurs duringthepre-trialstageofaproceeding(includinganinterlocutoryhearing) whichrelatestoaperson’sapplicationforthecourttograntaseriousinjury certificatepursuanttos.93(4)(d)oftheAct,and/ortheperson’sapplicationfor damages to beawarded pursuant to s.93 of the Actwhere:
•itisnecessaryto enforceorders ofthe Court byapplication; or
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•therehas been a materialnon compliancewith theRules; or
•amaterialactoromissionbyoronbehalfofapersoncontributestoa delayin the dispositionof theperson’sclaim; or
•theproceedingrelatestoaclaimbytheTACforacontributiontowards liabilityoranyrecoveryofstatutorybenefits paid bythe TAC.
3.3IftheTACreceivesanorderforcostsinitsfavourataninterlocutorystage (e.g. pursuant toan order ofthe PracticeCourt)orin consequence ofthe adjournmentoftheproceeding,theTACwillgenerallystayrecoveryofthose costsuntil theCourt hasmade final orders in the proceeding.
3.4Ifthefinalordersinaproceedingincludeanorderforcostsinfavourofa person,thenthe TACwillseektooffsetanyordersobtainedpursuanttothe previous paragraphagainst costs ordered to be paid bytheTAC to the person.
3.5Inanyanactionfordamagestobeawardedpursuanttos.93oftheActwhere theordersoftheCourtarenotmorefavourabletoapersonthanthetermsofan OfferofCompromise(“OOC”)servedbytheTACoronbehalfoftheTAC’s indemnifiedownerordriver,theTACwillgiveeffecttothetermsofanOOC byseekingthatanycostsorderedtobepaidbythepersontotheTACorthe TAC’sindemnifiedownerordriverbeoffsetagainstany costs owingtothe person bythe TAC.
PartB-Applicationsgovernedbysections79(2)and(3)oftheTransportAccidentAct1986
4.1TheCRChasnoinvolvementinthedeterminationofcostrecoveryissuesin relation to this Part of theGuidelines.
4.2WheretheordersmadebytheTribunalarenotmorefavourabletoapartythan thetermsofa CalderbankofferoranoffermadebytheTACinaccordance withsection112oftheVCATAct,theTACwilltakeintoaccountthegeneral
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principles set out in section 2 when considering what is “just” within the meaningof section 79(2)of theAct.
4.3IftheTACreceivesanorderforcostsinitsfavourataninterlocutorystage (e.g.Directions HearingorCompulsoryConference),theTACwillgenerally stayrecoveryofthosecosts untiltheTribunalhasmadefinalordersinthe proceeding.TheTACwillgenerallymakeapplicationforaninterlocutorycosts order in any case where the conduct of an applicant falls within the circumstancesdescribedinsection78oftheVCATActorwhereamaterialact or omission by or on behalf of an applicant leads to an unnecessary prolongationoftheapplication.Ifthefinalordersmadeinaproceedinginclude anorderforcostsinfavourofanApplicant,thentheTACwillrequestthatthe interlocutorycostsordered initsfavourbesetoffagainstcostsorderedtobe paid to an Applicant.
4.4IngeneraltheTACwillonlyseekanorderforlegalcoststobetaxedonCounty Courtscale.Wherecircumstancespermitnegotiationtotakeplacepriortoorder bytheTribunal,theTACwillendeavourtoagreetofixcostsatasumcertain instead of seekingan order on scaleto be taxed in defaultof agreement.
4.5IneverycasetheTACwillendeavourtoagreethereasonablequantumofa costs order in favouroftheTAC withoutresort to taxation.
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