(1) This rule applies if--(a) in proceedings in the District Court, a plaintiff has obtained a judgment against the defendant or, if more than one defendant, against all the defendants, in an amount of less than $40,000, and(b) the plaintiff would, apart from this rule, be entitled to an order for costs against the defendant or defendants.
(2) If the proceedings could have been commenced in the Local Court, an order for costs must not be made unless the District Court is satisfied the commencement and continuation of the proceedings in the District Court was warranted.