143Cost penalty for excessive claim

143 Cost penalty for excessive claim

(1)  This rule applies to an action in which a party obtains a final judgment, other than by consent, for an amount that is less than 50% of the amount claimed by the party at the operative date.

(2)  Unless at the time of judgment the Court orders otherwise, the costs to which a party referred to in subrule (1) is entitled are to be calculated in accordance with the following formula:

where –

C is the costs to which the party is entitled;

P is the costs of the party, as agreed or assessed;

J is the sum of money awarded by the judgment, exclusive of costs and interest;

A is the amount claimed at the operative date.

(3)  The amount claimed may be amended by order of the Court or a registrar at a conciliation conference.

(4)  An amendment to an amount claimed is effective from the date of the order.

(5)  If this rule and rule 142 apply to the same action, neither rule has effect.