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[2025] WASC 373
Supreme Court of WA
2026-01-30
Palmer J
Original judgment source is linked above.
(a) the scale rates in relation to the senior practitioner rates relating to Mr Thomas Henry Jacobs be uplifted by 31.76% and the junior practitioner rates for Mr Michael Stulic be uplifted by 9.35%;
(b) its costs be taxed without regard to:
(i) the maximum allowable hourly and daily rates imposed by Table A of the Legal Profession (Supreme and District Court) (Contentious Business Determinations 2024) (WA) (the Determination) for senior counsel and counsel; and
(ii) the limits imposed by Table B for items 1(a), 1(c), 4, 6(a), 10(c) and 19 of the Supreme Court Scale of Costs 2024 in Table B of the Determination.
When an order will be made under s 141(3) of the Uniform Law
(1) The following are regulated by an applicable costs determination -
(a) the taxation of bills of law practices;
(b) any other aspect of the costs charged by law practices.
...
(3) Despite subsection (1), if a court or judicial officer is of the opinion that the amount of costs allowable in respect of a matter under a costs determination is inadequate because of the unusual difficulty, complexity or importance of the matter, the court or officer may do any or all of the following -
(a) order the payment of costs above those fixed by the determination;
(b) fix higher limits of costs than those fixed in the determination;
(c) remove limits on costs fixed in the determination;
(d) make any order or give any direction for the purposes of enabling costs above those in the determination to be ordered or assessed.
(4) Subsection (1) does not limit the power of a court, a judicial officer or a taxing officer of a court to determine in any particular case before that court, judicial officer or taxing officer the amount of costs allowed.
(a) first, is the maximum amount allowable under the applicable costs determination inadequate, in the sense that there is a fairly arguable case that, on a taxation of costs, costs may properly be allowed in an amount greater than the maximum amount?
(b) secondly, does the inadequacy of the costs allowable under the costs determination arise because of the 'unusual difficulty, complexity, or importance of the matter'?
... there should be no expectation that, as a matter of course, rates in the costs agreement which are above scale will be ordered to be the rates to apply in taxation as between party and party. There would have to be evidence justifying the higher rate. The whole point of the existing scale is that the rates are struck by reference to what is being charged within the profession. It is true that the hourly rates can only be an average or mean of the upper rates determined in the survey, and there will be some cases where the unusual complexity or importance of the case warrants the special expertise of the practitioner involved and warrants an increase in the hourly rate. In some cases not involving unusual complexity or importance, the higher rates paid will not be recoverable. A party is always entitled to the luxury of retaining the highest paid practitioners in the conduct of their case, but they cannot always expect to recover these costs from the other party. If the hourly rates in the scale are thought by parties or practitioners to be too low for work which is not of unusual complexity or importance, then submissions should be made to the Legal Costs Committee to increase the rates in the scale.
Why Martinus claims that a special costs order should be made Mr Jacobs's evidence
(a) the Building & Construction Industry (Security of Payment) Act 2021 (the Act) is new and the issues under consideration had not been the subject of previous judicial consideration in this State;
(b) the matter required a detailed and comprehensive analysis of the Act, the Building and Construction Industry (Security of Payment) Regulations 2022 (WA) (the Regulations), and the Electronic Transactions Act 2011 (WA) (the Electronic Transactions Act);
(c) it was initially considered that expert evidence might be required concerning when an email reaches a recipient's address;
(d) it was necessary to consider various decisions relating to similar matters in Queensland and New South Wales;
(e) the law is developing and continued to develop rapidly as the proceedings unfolded;
(f) the ongoing and concurrent adjudication applications that were made by Martinus resulted in amounts being paid in relation to line items that were the subject of the relevant payment claim that was the subject matter of this litigation, which led to amendments to the proceedings as those amounts were secured and paid;
(g) the proceedings needed to be managed in conjunction with the other proceedings; and
(h) CBH sought to place before the court a significant number of additional documents, none of which were actually referred to at trial including all of the adjudication applications, responses and determinations.[17]
(a) for senior counsel, Mr Scott Robertson SC, $1,200 (ex GST) per hour and $12,000 (ex GST) per day; and
(b) for junior counsel, Mr Darren Pratt, $600 (ex GST).[18]
(a) 6.4 hours of work performed by Mr Pratt;
(b) 8.5 hours work performed by Mr Jacobs; and
(c) 4 hours work performed by Mr Stulic.[22]
(a) 1.9 hours of work performed by Mr Pratt;
(b) 17.9 hours work performed by Mr Jacobs; and
(c) 1.9 hours work performed by Mr Stulic.[25]
(a) 7 hours of work performed by Mr Pratt;
(b) 19.7 hours work performed by Mr Jacobs; and
(c) 0.1 hours work performed by Mr Stulic.[28]
(a) 1.9 hours of work performed by Mr Pratt;
(b) 28.8 hours work performed by Mr Jacobs; and
(c) 10.1 hours work performed by Mr Stulic.[31]
(a) 30 hours of work by Mr Robertson SC;
(b) 60.6 hours of work performed by Mr Pratt;
(c) 76.9 hours work performed by Mr Jacobs; and
(d) 110.4 hours work performed by Mr Stulic.[34]
(a) each adjudication determination (of which there were, at the time, six);
(b) each payment made by CBH to Martinus pursuant to each adjudication determination;
(c) a table that outlined each and every payment claim and payment schedule sent and received by the partis since July 2023; and
(d) a table that outlined each and every payment made by CBH to Martinus pursuant to each adjudication determination for the specific line-items contained in the relevant August 2024 payment claim.[36]
Why CBH maintains that a special costs order should not be made
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] Sino Iron Pty Ltd v Mineralogy Pty Ltd [No 2] [2017] WASCA 76 (S) (Sino).
[3] EDWF Holdings Pty Ltd v EDWF Holdings 2 Pty Ltd [2008] WASC 275 (S) [7]; Verdell Pty Ltd v F & G Nominees Pty Ltd [2002] WASC 58 (S2) [14].
[6] Flotilla Nominees Pty Ltd v Western Australian Land Authority [2003] WASC 122 (S); (2003) 28 WAR 95, 100 [22].
[9] Blatchford v Laine [2018] WASC 207 (S) [88].
[11] Jacobs Affidavit, attachment 'THJ-01'.
[12] Jacobs Affidavit, [16] - [18].
[13] Jacobs Affidavit, [19] - [29], [31].
[14] Roberts Co (NSW) Pty Ltd v Sharvain Facades Pty Ltd (Administrators Appointed) [2025] NSWCA 161; Jacobs Affidavit, [32] - [38], [40] - [42].
[15] Jacobs Affidavit, [44] - [55].
[16] Jacobs Affidavit, [56] - [57].
[18] Jacobs Affidavit, [67] - [69].
[19] Jacobs Affidavit, [71] - [72].
[22] Jacobs affidavit, [73]; Draft Bill, item 1.
[25] Jacobs affidavit, [73]; Draft Bill, item 3.
[28] Jacobs affidavit, [73]; Draft Bill, item 5.
[31] Jacobs affidavit, [73]; Draft Bill, item 2.
[34] Jacobs affidavit, [73]; Draft Bill, item 11.
[36] Jacobs Affidavits, [33] - [34].
[38] Plaintiff's Submissions Pursuant to Section 141(3) of the Legal Profession Uniform Law Application Act 2022 (WA) dated 2 October 2025 (Plaintiff's Submissions), [34].
[39] Defendant's Submissions in Opposition to the Application for Special Costs Orders dated 16 October 2025 (Defendant's Submissions), [6] - [23].
[40] Defendant's Submissions, [8] - [9].
[41] Defendant's Submissions, [10.1].
[42] Defendant's Submissions, [10.2].
[43] Defendant's Submissions, [10.3].
[50] Defendant's Submissions, [19.1].
[51] Defendant's Submissions, [19.2].
[52] Defendant's Submissions, [20.1], [20.4].
[54] Defendant's Submissions, [20.3] - [20.7].
(2003) 28 WAR 95