Price Waterhouse Meyernel v Thoroughbred Breeders' Association of South Africa (28/2002) [2002] ZASCA 137; [2002] 4 All SA 723 (SCA); 2003 (3) SA 54 (SCA); 65 SATC 354 (15 November 2002)

Price Waterhouse Meyernel v Thoroughbred Breeders' Association of South Africa (28/2002) [2002] ZASCA 137; [2002] 4 All SA 723 (SCA); 2003 (3) SA 54 (SCA); 65 SATC 354 (15 November 2002)

The Supreme Court of Appeal held that the Taxing Master erred in failing to determine whether the VAT included in the respondent's bill of costs was a true disbursement, i.e., an expense for which the respondent was genuinely out of pocket and not recoverable as input tax. The Taxing Master was required to make this determination and could not simply defer the issue to the revenue authorities. On the quantum of counsel's fees, the Court found that the Taxing Master incorrectly used the fees charged by the applicant's leading senior counsel as a yardstick for assessing the respondent's senior counsel's fees, without considering the actual work performed and the differing circumstances of...

Citation
[2002] ZASCA 137
Parties
Applicant: Price Waterhouse Meyernel; Respondent: Thoroughbred Breeders' Association of South Africa
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
15 November 2002
Case Number
28/2002
Procedural Posture
Review Application / Review of Taxation Following Appeal
Outcome
Review succeeded on both VAT and quantum of counsel's fees. Taxing Master's allocatur set aside and matter remitted for taxation afresh.
Judges
Hefer, Vivier, Howie, Harms, Conradie
Legal Topics
Taxation of Costs, Value Added Tax, Quantum of Counsel Fees
Civil Procedure Taxation of Costs Value Added Tax Quantum of Counsel Fees

Case Brief

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Parties

Price Waterhouse Meyernel

Applicant

Thoroughbred Breeders' Association of South Africa

Respondent

Procedural Posture

Review Application / Review of Taxation Following Appeal

Legal Issues

  1. 1 Whether VAT may properly be included in the taxed costs where the successful party may recover it as input tax.
  2. 2 Whether the quantum of counsel's fees allowed by the Taxing Master was reasonable and properly assessed.

Ratio Decidendi

The Supreme Court of Appeal held that the Taxing Master erred in failing to determine whether the VAT included in the respondent's bill of costs was a true disbursement, i.e., an expense for which the respondent was genuinely out of pocket and not recoverable as input tax. The Taxing Master was required to make this determination and could not simply defer the issue to the revenue authorities. On the quantum of counsel's fees, the Court found that the Taxing Master incorrectly used the fees charged by the applicant's leading senior counsel as a yardstick for assessing the respondent's senior counsel's fees, without considering the actual work performed and the differing circumstances of...

Court Disposition

Review succeeded on both VAT and quantum of counsel's fees. Taxing Master's allocatur set aside and matter remitted for taxation afresh.

Orders

  • The Taxing Master's allocatur is set aside and the matter is remitted to him for taxation afresh in the light of this judgment and in the light of such information and arguments as the parties may present on that occasion.
  • The respondent (plaintiff in the action and appellant on appeal) is to pay the cost of the review application.