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2021 MarsdenLR 1443
HIGH COURT MALAYA SHAH ALAM
SYARIKAT PEMBINAAN ANGGERIK SDN BHD – Appellant
Versus
MALAYSIA AIRPORTS HOLDINGS BERHAD – Respondent
[Civil Suit No: BA-22C-23-04/2017]
Costs of legal proceedings are typically awarded to the successful party, but may be adjusted based on the complexity of the case and the efforts required for representation.
Headnote:(A) Rules of Court 2012 – Order 59 – Costs – General rule that costs follow the event with discretion for the court to order otherwise – In complex cases, costs are assessed according to the success on individual claims – Factors considered in assessing costs include complexity, skill, and importance of the matter – Plaintiff awarded half the costs of original claims; defendant awarded half the costs of counterclaims. (Paras 4-30)
(B) The complexity of the plaintiff's case involved various construction law aspects with multiple claims and voluminous documentation emphasizing its difficulty. (Paras 12-13)
(C) The balance assessed favors mutual set-off, leading to the plaintiff obtaining a net cost amount after considering overall awards for both parties. (Paras 30-31)
Facts of the case: The case involves competing claims and counterclaims between a private plaintiff and a public-listed defendant, centered on substantial monetary claims related to construction contracts totaling approximately RM66 million, with outcomes impacting both parties significantly.
Findings of Court: The court determined that costs awarded for both parties should reflect their respective successes in the claims and counterclaims, establishing reasonable amounts based on complexity and duration of the proceedings.
Issues: The primary issues pertain to the assessment of costs based on the success of the claims and counterclaims, balancing complexity and legal efforts expended.
Ratio Decidendi: The court confirmed that the costs should generally align with the outcome of the claims while considering the complexity and significant time invested by both parties’ legal representation and experts.
Result: The plaintiff is awarded RM95,000 after mutual set-off, subject to allocator.
JUDGMENT
Introduction
[1] In the Closing Submissions, the parties did not address this Court on the question of costs and the amount thereof. However, there is a written request in the plaintiff's Closing Submissions asking for the question of costs and the amount thereof to be addressed separately in a separate submission. Pursuant to such request, this Court granted leave for both parties to file and exchange written submissions on the costs and the amount thereof.
[2] After having read and considered the parties' respective written submissions on costs, this Court awarded costs of the plaintiff's claims and the defendant's counterclaims as follows:
(a) The plaintiff is awarded half the costs of the claims in the original action;
(b) The defendant is awarded half the costs of the counterclaim proceeding;
(c) The costs of the claims in the original action are assessed at RM250,000, and the plaintiff is awarded RM250,000 x 50% = RM125,000;
(d) The costs of the counterclaim proceeding are assessed at RM60,000, and the defendant is awarded RM60,000 x 50% = RM30,000; and
(e) After mutual set-off, the plaintiff is awarded the net amount of RM125,000 - RM30,000 = RM95,000 as costs of the overall proceedings, subject to allocatur.
[3] By Notice of Appeal dated and filed on 29 November 2021, the plaintiff has appealed this Court's aforesaid award of costs insofar as it relates to the award of costs of counterclaims in favour of the defendant. On 9 December 2021 the defendant by its Notice of Appeal dated 7 December 2021 also appealed against the entirety of this Court's decision on award of costs.
Principles On Award Of Costs Of Action
[4] The general rule is that the costs follow the event. This means that the successful party is entitled to be paid his costs unless there are special grounds to order otherwise.
[5] The 'event' assumes that there is a clear discernible winning party. However, where a case involves several different issues or heads of claim and not all are won by the plaintiff (such as the present case), the costs relating to the issue go to the party who succeeds on it (Reid, Hewitt & Co v. Joseph [1918] AC 717 and Heng Holdings SEA (Pte) Ltd v. Tomongo Shipping Co Ltd [1997] 3 SLR 919.
[6] With regard to costs payable for trial in the High Court, O 59 r 19 of the Rules of 2012 (" ROC ") stipulates inter alia that the amount of costs that are payable shall be at the discretion of the Court and shall exclude disbursements.
[7] Order 59 r 19 of the Rules of 2012 (" ROC 2012") stipulates that in exercising its discretion to order the costs payable for a trial in the High Court, the Court shall have regard to the relevant circumstances including but not limited to factors set out in O 59 r 16 of the 2012.
[8] The non-exhaustive factors set out in O 59 r 16 of the ROC 2012 are as follows:
(a) The complexity of the item or the cause or matter in which it arises, and the difficulty or novelty of the questions involved;
(b) The skill, specialised knowledge and responsibility of, and the time and labour expended by, the solicitor or counsel;
(c) The number and importance of the documents, however brief, prepared or perused;
(d) The place and circumstances in which the business involved is transacted;
(e) The importance of the cause or matter to the client;
(f) Where money or property is involved, the amount or value;
(g) Any other fees and allowances payable to the solicitor or counsel in respect of other items in the same cause or matter, but only where work done in relation to those items has reduced the work which would otherwise have been necessary in relation to the item in question.
Summary Of Heads And Amounts Awarded In The Present Case
[9] A summary of the judgment of this Court is summarised in the table below:
Parties' Respective Positions On Costs And Amount Thereof
[10] The plaintiff's position is that the costs of the plaintiff's claims in the original action should be RM400,000 and after taking into account the dismissa
