Cannon South Africa v Commissioner: South Africa Revenue Custom and Excise (2671/2016P) [2016] ZAKZPHC 94 (7 October 2016)

Cannon South Africa v Commissioner: South Africa Revenue Custom and Excise (2671/2016P) [2016] ZAKZPHC 94 (7 October 2016)

The court found that the litigation was complex and technical, involving customs and excise matters and international trade agreements, which justified the engagement of Senior Counsel and the associated costs. The Taxing Master did not properly exercise her discretion by disregarding the complexity and nature of the litigation. The court held that an exception should be made, and the Bill of Costs should be referred back to the Taxing Master for reconsideration and re-taxation, allowing for the reasonable disbursements and fees incurred. Each party was ordered to pay its own costs.

Citation
[2016] ZAKZPHC 94
Parties
Applicant: Cannon South Africa; Respondent: Commissioner: South Africa Revenue Custom and Excise
Court
Kwazulu-Natal High Court, Pietermaritzburg
Jurisdiction
South Africa
Judgment Date
7 October 2016
Case Number
2671/2016P
Procedural Posture
Review Application / Review of Taxation Under Rule 48
Outcome
The taxation of the Bill of Costs dated 22 February 2016 is set aside and referred back to the Taxing Master for re-taxation. Each party is to pay its own costs.
Judges
Mbatha
Legal Topics
Review of Taxation, Costs Discretion, Party and Party Bill, Customs Tariff Classification
Tax Law Civil Procedure Review of Taxation Costs Discretion Party and Party Bill Customs Tariff Classification

Case Brief

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Parties

Cannon South Africa

Applicant

Commissioner: South Africa Revenue Custom and Excise

Respondent

Procedural Posture

Review Application / Review of Taxation Under Rule 48

Legal Issues

  1. 1 Whether the Taxing Master misdirected herself in disallowing certain counsel's fees as attorney and client costs.
  2. 2 Whether the Taxing Master exercised her discretion properly in determining the reasonableness of counsel's fees for perusal, consultation, and drafting.
  3. 3 Whether the complexity and technical nature of the litigation justified the engagement of Senior Counsel and the associated costs.

Ratio Decidendi

The court found that the litigation was complex and technical, involving customs and excise matters and international trade agreements, which justified the engagement of Senior Counsel and the associated costs. The Taxing Master did not properly exercise her discretion by disregarding the complexity and nature of the litigation. The court held that an exception should be made, and the Bill of Costs should be referred back to the Taxing Master for reconsideration and re-taxation, allowing for the reasonable disbursements and fees incurred. Each party was ordered to pay its own costs.

Court Disposition

The taxation of the Bill of Costs dated 22 February 2016 is set aside and referred back to the Taxing Master for re-taxation. Each party is to pay its own costs.

Orders

  • The taxation of the Bill of Costs on 22 February 2016 under case no 4449/2014 is set aside.
  • The Bill of Costs is referred back to the Taxing Master for taxation de novo in accordance with the review judgment.