legal costs
📖 What is legal costs? Meaning and definition
In New Zealand tenancy disputes, legal costs refer to the money spent by one party (like an owner or tenant) on legal representation and related expenses during a Tenancy Tribunal case. These costs can include fees for lawyers or other representatives, and they are often sought by the winning party from the losing party. The Tenancy Tribunal has the power to order one party to reimburse the other for some or all of these costs.
The decision to award legal costs, and the amount, is made by the Tribunal after considering various factors. These factors can include the length and complexity of the proceeding, whether representation was necessary, the total costs incurred, and if the dispute could have been avoided through good faith engagement. The Tribunal may also consider if the claimed costs are reasonable, for example, if the level of legal representation was excessive for the case.
For self-represented litigants, understanding legal costs is important because while they might not have lawyer fees, they could still be ordered to pay the other party's legal costs if they lose. Conversely, if they win, they might be able to claim reimbursement for their own out-of-pocket expenses, such as filing fees, although the excerpts specifically mention 'legal costs' as distinct from filing fees or cleaning costs.
📋 Requirements
- A party must apply for recovery of costs.
- Invoices or proof of costs incurred must be presented to the Tribunal.
- The Tribunal considers the relevant legal considerations for costs claims.
- The proceeding's length and complexity may influence the decision.
- The Tribunal assesses if the costs were reasonably incurred and if the level of representation was appropriate.
📝 Procedure
- A party makes an application for recovery of costs.
- The party seeking costs provides details of the expenses, such as legal invoices.
- The Tribunal considers arguments from both sides regarding the costs claim.
- The Tribunal applies legal considerations to determine if costs should be awarded and the amount.
- An order is issued specifying if legal costs are to be paid and by whom.
💡 Examples
- An owner was ordered to pay over $11,000 in legal costs to another party as part of a total award for unpaid levies and interest.
- A tenant claimed over $10,000 for cleaning costs, which was distinct from the legal costs incurred for representation in the case.
- A claim for legal costs from a company was declined by the Tribunal, even though another party was ordered to pay a significant sum in costs.
- The total legal costs for two separate claims were split, resulting in a specific amount allocated to one application.
❓ Frequently asked questions
What exactly are 'legal costs' in a Tenancy Tribunal case?
Legal costs are the expenses a party incurs for legal representation or other professional assistance during a Tenancy Tribunal dispute. These can include fees paid to lawyers or other representatives for their services.
Can I claim my legal costs if I win my Tenancy Tribunal case?
If you win, you can apply to the Tenancy Tribunal to have the other party pay your legal costs. The Tribunal will consider your application, the evidence of your costs, and other factors before deciding whether to make such an order.
What factors does the Tenancy Tribunal consider when awarding legal costs?
The Tribunal considers factors such as the complexity and length of the case, whether legal representation was necessary, the total costs incurred, and if the dispute could have been avoided. They also assess if the claimed costs are reasonable.
Are filing fees considered 'legal costs'?
Based on the case excerpts, filing fees are typically listed separately from 'legal costs' in the breakdown of an award. While both are expenses, they are often treated as distinct categories by the Tribunal.
What if the other party's legal costs seem too high?
You can argue to the Tribunal that the other party's claimed legal costs are excessive or unreasonable. The Tribunal will assess if the level of representation and the associated costs were appropriate for the specific case.
Do I have to pay legal costs if I represent myself?
If you represent yourself, you won't have lawyer fees to claim. However, if you lose, you could still be ordered to pay the legal costs of the other party if they had legal representation and applied for reimbursement.