(1) The legal costs incurred in a proceeding must be:
(a) fairly, reasonably and proportionately incurred; and
(b) fair, reasonable and proportionate in amount;
in the circumstances of the proceeding.
(2) In considering whether a party's legal costs have been fairly, reasonably and proportionately incurred, regard must be had to all relevant matters including, but not limited to, whether a lawyer representing the party, a lawyer representing any other party, or any self-represented litigant has:
(a) complied with all relevant rules and orders of the court, including requirements that documents be filed or provided to other parties by a given date; and
(b) acted reasonably in raising, pursuing or contesting a particular allegation or issue; and
(c) made reasonable efforts, subject to the client's instructions, to resolve the dispute through negotiation, mediation or arbitration; and
(d) made reasonable efforts to narrow the issues in dispute; and
(e) filed no more interlocutory applications than are reasonably necessary in the circumstances of the proceeding; and
(f) filed no more affidavits or other documents than are reasonably necessary in the circumstances of the proceeding.
(3) In considering whether a party's legal costs are fair, reasonable and proportionate in amount, regard must be had to all relevant matters including, but not limited to, whether the costs reasonably reflect:
(a) the level of skill, experience, specialisation and seniority of the lawyers concerned; and
(b) the level of complexity, novelty or difficulty of the issues involved, and the extent to which the proceeding involved a matter of public interest; and
(c) the labour and responsibility involved; and
(d) the circumstances in which lawyers acted, including any or all of the following:
(i) the urgency of the work;
(ii) the time spent on the work;
(iii) the time when work was required to be carried out;
(iv) the place where work was required to be carried out;
(v) the number and importance of any documents involved; and
(e) the quality of the work done; and
(f) the retainer and the instructions (express or implied) given in the matter.
(4) In considering whether a party's legal costs have been fairly, reasonably and proportionately incurred under subrule (2), or are fair, reasonable and proportionate in amount under subrule (3), regard must also be had to any applicable State or Territory law in relation to the regulation of legal practitioners in that State or Territory.
(5) In relation to an application for costs by one party against another, a cancellation fee levied by a barrister or solicitor advocate is taken not to be reasonable.