2. What is the difference between “taxation” and “summary assessment”?

2. What is the difference between “taxation” and “summary assessment”? 

The primary difference between taxation and summary assessment lies in the level of detail, the timing of payment, and the overall purpose of the quantification process. While both procedures determine the amount of legal costs one party must pay another, they operate under different principles: 

Method of quantification 

Taxation: This is a formal, item-by-item process where every single item in a receiving party's bill of costs is potentially subject to challenge and scrutiny. It is detailed and can be quite lengthy. 

Summary assessment: This is a “broad-brush” approach where the court determines a sum of money to be paid in lieu of taxed costs. The court does not conduct a “mini-taxation” of every item but instead looks at the costs globally to ensure they are proportionate and reasonable. 

Immediacy and timing 

Taxation: Costs are generally not taxed until the conclusion of the entire action. Once the amount is certified by a taxing master, it becomes a judgment debt. The debt is immediately due and payable. 

Summary assessment: A key feature is immediacy of payment. When costs are summarily assessed (typically following an interlocutory application), they must generally be paid within 14 days of the order, even if the main case is still ongoing. 

Purpose and objectives 

Taxation: The goal is to reach a precise determination of the costs “necessary or proper” for the attainment of justice after a case or major stage has concluded. 

Summary assessment: This procedure is specifically aimed at discouraging unwarranted interlocutory applications or resistance to them. By requiring the losing party of an application to pay an assessed sum immediately, it acts as a procedural discipline. 

Procedural differences 

Summary assessment is conducted by the judge or master who heard the substantive application and is already familiar with the case. Taxation is handled by a taxing officer (a master or, for smaller bills, a Chief Judicial Clerk). 

For summary assessment, parties submit a simplified “Statement of Costs”. For taxation, a formal, chronological “Bill of Costs” is required. 

A prescribed taxing fee is payable to the court to commence taxation proceedings. In contrast, no taxation fee is payable for a summary assessment. 

The “provisional” middle ground 

Provisional taxation: A paper-based taxation without a hearing, which is now the norm for quantifying bills to save time. The taxing officer issues an order nisi regarding the amount and costs of taxation. It becomes absolute in 14 days unless a party applies for a hearing. If a party insists on a hearing but fails to do “materially better,” they may face costs sanctions. 

Provisional summary assessment: A judge may summarily assess costs but allow a party who feels aggrieved by the “broad-brush” amount to insist on a formal taxation at the end of the proceedings, though they risk costs sanctions if the taxation does not result in a materially better outcome.