Strauss Daly v Member of the Executive Council, Health KwaZulu-Natal (2899/2021P) [2021] ZAKZPHC 64 (20 September 2021)

Strauss Daly v Member of the Executive Council, Health KwaZulu-Natal (2899/2021P) [2021] ZAKZPHC 64 (20 September 2021)

The court found that the Taxing Master failed to exercise her discretion in assessing the reasonableness of the perusal fees claimed by the plaintiff, instead treating the service level agreement as binding and disregarding established principles of taxation. The Taxing Master did not consider whether the fees were reasonable, nor did she apply the 40-page per hour rule or a lump sum approach for bulk perusal and re-perusal of documents. The amounts allowed for perusal were found to be excessive and unjustifiable, particularly where re-perusal was involved. The existence of a service level agreement does not oust the Taxing Master's discretion to determine reasonable costs. The court held...

Citation
[2021] ZAKZPHC 64
Parties
Plaintiff: Strauss Daly; Defendant: Member of the Executive Council, Health KwaZulu-Natal
Court
Kwazulu-Natal High Court, Pietermaritzburg
Jurisdiction
South Africa
Judgment Date
20 September 2021
Case Number
2899/2021P
Procedural Posture
Review Application / Review of Taxing Master's Decision Under Uniform Rule 48
Outcome
Review application succeeded; Taxing Master's decision on perusal fees set aside and referred back for re-taxation.
Judges
Mossop AJ
Legal Topics
Taxation of Costs, Review of Taxing Master, Service Level Agreement, Reasonableness of Fees, Bulk Perusal, Discretion of Taxing Master
Civil Procedure Taxation of Costs Review of Taxing Master Service Level Agreement Reasonableness of Fees Bulk Perusal Discretion of Taxing Master

Case Brief

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Parties

Strauss Daly

Plaintiff

Member of the Executive Council, Health KwaZulu-Natal

Defendant

Procedural Posture

Review Application / Review of Taxing Master's Decision Under Uniform Rule 48

Legal Issues

  1. 1 Whether the Taxing Master erred in allowing perusal fees at the rates claimed by the plaintiff under the service level agreement.
  2. 2 Whether the Taxing Master failed to exercise her discretion to determine the reasonableness of the fees claimed.
  3. 3 Whether bulk perusal and re-perusal of documents should be allowed at a reduced rate.

Ratio Decidendi

The court found that the Taxing Master failed to exercise her discretion in assessing the reasonableness of the perusal fees claimed by the plaintiff, instead treating the service level agreement as binding and disregarding established principles of taxation. The Taxing Master did not consider whether the fees were reasonable, nor did she apply the 40-page per hour rule or a lump sum approach for bulk perusal and re-perusal of documents. The amounts allowed for perusal were found to be excessive and unjustifiable, particularly where re-perusal was involved. The existence of a service level agreement does not oust the Taxing Master's discretion to determine reasonable costs. The court held...

Court Disposition

Review application succeeded; Taxing Master's decision on perusal fees set aside and referred back for re-taxation.

Orders

  • The taxation of the four bills of costs taxed by the Taxing Master on 13 April 2021, insofar as they relate to the perusals forming the subject matter of these review proceedings, is set aside.
  • The four bills of costs are referred back to the Taxing Master, who must tax the perusals de novo in accordance with this judgment.