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Arbitration: Payment of costs

By Cecile Louw on Fri, 03 Sep 2010 at 11:27

I refer to an earlier post of mine under the heading" Owner from Hell". Well, she's at at again!

Last time round we sought legal advice from a well known legal firm who supposedly are experts on sectional title matters. They botched the case good and solid to such an extent that they refunded the Body Corporate every last cent paid to them plus the legal costs paid by the Body Corporate to another lawyer who had previously dealt with the case until it was referred to this crowd. The case never went to court nor did it go to arbitration because we have been waiting for this firm of lawyers to come up with a suggestion but it seems as if they have decided to just drop it altogether.

The owner concerned has now sent a letter to the Trustees demanding that the Body Corporate refund her legal costs. What is the situation regarding payment of legal fees in this matter where there has been no case and no court order regarding settlement of fees?
Cecile Louw, Roodepoort

Replies

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RE: Arbitration: Payment of costs

John Yates replied on Fri, 03 Sep 2010 at 12:06

Follow.

RE: Arbitration: Payment of costs

Mike Power replied on Fri, 03 Sep 2010 at 15:18

follow

RE: Arbitration: Payment of costs

Myburgh Brink replied on Fri, 03 Sep 2010 at 15:30

Follow

RE: Arbitration: Payment of costs

Thomas Groenewald replied on Fri, 03 Sep 2010 at 16:32

My personal assumption would be: No Award of Costs (regardless of no case) would result in the individual responsible for her own costs. In support of the argument, how do the owner members of the BC benefit from the individual\'s legal costs? Why should any of the owners share the costs?
Visit: http://www.jgs.co.za/pages/publications/litigation/litigation_3.html -- note"
"The purpose of an award of costs is to indemnify a successful party who has incurred expenses in instituting or defending an action."
"Rules for court's guidance:
- General rule is that the successful party is entitled to his costs.
- Where a successful application is made for the grant of an indulgence the general rule is that costs do not follow the event.
- In determining the successful party, the court should not only look at the form, but also the substance of the judgement, e.g. inflated claims, partial success
- The court can for good reason deprive a party of his costs, in whole or in part, e.g. excessive demands, taking unnecessary steps, vexatious proceedings, technical success only
- The court can, for good reason, order the successful party to pay all or part of the other parties costs, e.g. misleading statements.
- The court can, in special circumstances, order one party to pay the costs of the opponent on an attorney and client scale, e.g. dishonesty, fraud, grave misconduct.
- The court may order the unsuccessful party, suing or being sued, to pay costs de bonis propriis, e.g. material departure of responsibility of office."

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