In the context of the legal fraternity , taxation means moderation . It is a process by which a successful party can have their bill of costs moderated and confirmed as court order.

Taxation is where the buck stops in the litigation process. Here is a basic outline of how it works:

1. The court when granting judgement also awards costs to a successful party.
2. The court stipulates the scale on which costs will be billed. That is, it can either be costs on the ordinary scale or on a higher scale called the Attorney – Client scale. The latter scale is awarded only when the court wishes to show its displeasure against the losing party.
3. The successful party then prepares what we call a Bill of Costs, It is a detailed invoice of all the costs that the successful party had to pay for during the litigation process.
4. The bill is then filed at court and a stamp fee of P60.00 is paid by whoever files the papers, and a copy of the bill is then served to the unsuccessful party so that they can prepare themselves.
5. The registrar will set a date for taxation and invite the parties to come for taxation of the Bill.
6. On the day of taxation , the parties have the option to settle without going over the cost of each item or they go through the taxation process by discussing whether each item billed for is reasonable.
7. At the end of the meeting , the total costs are added and the registrar issues an order directing the unsuccessful party to pay the costs. The Registrar’s order is as valid as any court judgement. The unsuccessful party may negotiate for a grace period if the other party is open to it. Generally costs are payable immediately.

Things To Note:

1. Taxation is more beneficial if the successful party had an attorney representing them. Individuals may only recover transport costs and printing costs.
2. Insist on a record being written on the proceedings of taxation especially if you do not agree with certain awards made by the Registrar

How To Prepare For Taxation:

The general rule is that the more experienced the attorney, the higher their hourly rate. With that in mind, you should also ensure that you have the following documents when you go for taxation:

1. Certification of admission to practice or your practicing certificate for the first year of practice.
2. Valid practicing certificate to establish that you are qualified to enjoy costs

If you have proof of your years of experience it is easy to set the hourly rate to be used throughout the Bill. Failure to produce proof of your admission could cost you thousands so always be prepared. Do not assume that the other attorney know you or the registrar knows you. Technicalities can really cost an attorney and their client a lot of money.

Right To Review

Every administrative decision can be reviewed by a court if the other party is displeased with the manner in which such decision was reached. That means, you can complain about the procedure that was adopted during taxation or the substance of the taxation that were taken into into account when they should have mattered.

On Failure To Pay

If the unsuccessful party does not pay on the date set, the successful party party may apply for a Writ of execution to attach property. If that does not bear fruit the successful party can also seek a garnishee order. Each option depends on the circumstances of the case.

On a parting note, be mindful of the fact that litigation is an expensive process and in some cases the costs recovered are far less than what the successful party invested. That being said, if there is ever any prospect of a settlement , explore it fully. There is no such thing as a 100% win in Litigation.

Who Gets Paid The Costs Awarded ? :

The successful party gets refunded what they paid to the attorney. The balance is a residual fee for the attorney who handled the case. This is because often times the attorney do not bill for every hour they spend on the case. The human element always factors in when on e bills their client.