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2013 MarsdenLR 343

HIGH COURT MALAYA KUALA LUMPUR
GIGA ENGINEERING & CONSTRUCTION SDN BHD – Appellant
Versus
YIP CHEE SENG & SONS SDN BHD & ORS – Respondent
[Civil Suit No: S-22-562-2002]



Court reviews and increases getting-up fees based on case complexity, time expended, and importance, correcting the learned SAR's underestimation of costs.

Headnote:(A) Rules of Court 2012 - Order 92 r 4 - Taxation of costs - 2nd defendant's application for the review of the getting-up fee awarded was justified based on the extensive legal complexities involved - The court aligned the getting-up fee with RM150,000.00 for both defendants, emphasizing the necessity of just costs that reflect the effort and resources expended. (Paras 10, 14, 16-64)

(B) Costs Review - Court's discretion and considerations - The learned SAR’s failure to adequately consider material complexity and the importance of the case led to an underestimation of appropriate costs, justifying a substantial increase to encompass all evidence and arguments presented during trial. (Paras 16, 20-21, 62-63)

Facts of the case:
The 2nd defendant sought an increase from RM66,000.00 for the getting-up fee, initially awarded less than requested based on complexities surrounding a joint venture and subsequent legal disagreements concerning tender preparations. The 1st defendant similarly sought a review from RM66,188.60 to RM300,000.00. (Paras 1-12)

Findings of Court:
The court allowed both defendants' applications for review and increased the getting-up fee to RM150,000.00 each, indicating that the previously awarded amounts were substantially lower than necessary for the legal work and research undertaken. (Paras 10-12)

Issues: The main issues were the adequacy of the getting-up fees in relation to the complexity of the case and the amount of resources dedicated to legal preparations. (Paras 16-20)

Ratio Decidendi: The court concluded that the learned SAR had not appropriately considered the extensive legal complexities, the time invested, and the importance of the claims presented, justifying the increase in the getting-up fees awarded to both defendants. (Paras 14, 20, 62)

Result: Applications for review allowed; getting-up fees amended to RM150,000.00 for both defendants.

Table of Content
1. applications for review of costs (Para 1 , 2 , 4 , 5)
2. plaintiff's objections to cost applications (Para 3 , 6 , 7 , 8)
3. plaintiff's resistance to defendants' applications. (Para 9)
4. court's rulings on getting-up fees (Para 10 , 11 , 14)
5. court decided to allow defendants' applications. (Para 12)
6. judgment rationale and reasoning. (Para 13)
7. background facts relevant to litigation. (Para 15)
8. principles guiding review of cost decisions (Para 16 , 18 , 19 , 20)
9. principles regarding taxation and discretion. (Para 17)
10. court's discretion in awarding costs (Para 21 , 22)
11. complexity of issues affecting costs (Para 23 , 24 , 26)
12. complexity of issues in the case. (Para 25 , 27)
13. illustration of relevant legal principles. (Para 28 , 29 , 30 , 31 , 32 , 33 , 34)
14. importance of representation to defendants (Para 39 , 50)
15. significance of attorney effort and complexity. (Para 41 , 42 , 43 , 45)
16. importance of case for defendants. (Para 52 , 54)

[1] Enclosure (103) is the 2nd defendant's application made vide a notice of application filed on 15 August 2012, pursuant to the inherent jurisdiction of the court under O 92 r 4 of the Rules of 2012 (" ROC 2012"), to the Judge-in- Chambers, to review the Registrar's Certificate in respect of item 69 of the 2nd defendant's Bill of Cost dated 2 August 2012, encl (83A), for getting-up (for which the 2nd defendant had sought a sum of RM240,000.00).

[2] In its application, the 2nd defendant is seeking for an increase in the amount of RM60,000.00 which was awarded by the learned Senior Assistant Registrar ("SAR"), ie on 9 May 2012 which was maintained by the learned SAR on 6 August 2012, upon a review made pursuant to the application of the 2nd defendant to the learned SAR, encl (94).

[3] Before me, the 2nd defendant's learned counsel has submitted that the amount awarded for the getting-up fee ought to be increased from RM66,000.00 to RM150,000.00 based on the grounds as set out in his Written Submissions and the authorities as contained in the Bundle of Authorities.

Enclosure (104)

[4] Enclosure (104) is the 1st defendant's notice of appeal dated 15 August 2012 to the Judge-in-Chambers to review the amount of the getting-up fee in the 1st defendant's Bill of Cost, encl (84A), which was awarded by the learned

SAR on 9 May 2012. The 1st defendant's learned counsel had sought a sum of RM300,000.00.

[5] The learned SAR had awarded a sum of RM66,188.60 for the getting-up fee together with a sum of RM5,206.00 as an allocator.

[6] Before me, the 1st defendant's counsel has submitted that the amount awarded for the getting-up fee ought to be increased from RM66,188.60 to RM300,000.00 based on the grounds as set out in her Written Submissions and the authorities as contained in her Bundle of Authorities.

Plaintiff's Submissions In Respect Of Enclosures (103) And (104)

[7] The plaintiff is resisting the 2nd defendant's application for a review of the Registrar's award and the 1st defendant's notice of appeal against the Registrar's award on the ground that the amount of getting-up costs claimed by the 1st and 2nd defendants in their respective Bills Of Cost is exorbitant, unduly inflated (see Pang Kok v. Leong Fock Hap & Anor, 1995 MarsdenLR 908 ; JP Finance (M) Berhad v. Tanswan Brothers Enterprise Sdn Bhd & Ors; 1994 MarsdenLR 1499 ; and L&M Airconditioning & Refrigerator (Pte) Ltd v. SA Shee & Co (Pte) Ltd [1993] 3 SLR 482) and unreasonably high and that the court in determining the total getting-up costs ought to take into account the established principle of law that the amount of cost claimed is reasonable in all the circumstances (see Union Insurance Malaysia Sdn Bhd v. Chan You Young , 2003 MarsdenLR 1871 ).

[8] In its skeletal submissions dated 5 November 2012 which were filed in a single bundle together with the authorities referred to, the plaintiff submitted as follows:

(a) that the plaintiff's claim was mainly a contractual claim;

(b) that the full trial involved m

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