ZAMBIA Law and Practice Contributed by: Mweshi Banda-Mutuna, Musenge Leah Nkonde and Lumbanya Judah Mulenga, Mweshi Banda & Associates Legal Practitioners
5.5 Costs The general rule in Zambia is that costs follow the event, meaning that the successful party is ordinar- ily entitled to recover its costs from the unsuccessful party, unless their conduct before and during the pro- ceedings justifies the court depriving them of all or a portion of all their costs. This general rule applies to how costs are awarded in arbitration and other forms of ADR, with the exception of mediation, where the award of costs is subject to the agreement of the par- ties. 5.6 Assessment of Costs The factors taken into consideration when awarding costs are as follows: • whether the successful party misconducted them- selves in the roadmap leading to the successful decision; • the necessity and proportionality of costs incurred; • the reasonableness of a party raising and pursuing a particular allegation or issue; • whether the successful party exaggerated their claim; • the skill, labour and responsibility involved in the discharge of the advocates’ duties in prosecuting or defending the claim; • whether there is certification justifying the appear- ance of two or more counsel; • whether the success of the party is nominal; • taxation is on a standard basis unless the under- lying agreement between the parties enforced through the proceedings requires the unsuccessful party to pay indemnity costs; and • any other matter relevant to the court’s discretion as to costs. Security for costs may also be ordered in appropriate cases, particularly where the claim appears specula- tive or the plaintiff is outside the jurisdiction with no demonstrable means of settling the costs of the action if the claim fails. 6. Interim Remedies 6.1 Availability of Interim Relief Key types of interim relief include the following.
The standard basis for legal fees between a practi- tioner and a client and for payment by a losing party in contentious matters in the High Court and appel- late courts is the Legal Practitioners (Costs) Order, SI No 6 of 2017 (Contentious Matters). The Order also applies to proceedings before any commission, tribu- nal, board or other body before which a legal practi- tioner can appear. Order 50 of the High Court Rules provides for the method of recovery of a practitioner’s costs, at least one month after providing the bill to the client. Non- contentious matters have their fees set out in the Legal Practitioners (Conveyancing and Non-Contentious Matters) (Costs) Order, SI No 7 of 2017. 5.2 Third-Party Funding There is no regulatory framework that governs third- party funding arrangements. Notably, the Legal Prac- titioners Act does not expressly permit, regulate or prohibit this. Consequently, there are no formal restric- tions on who may fund litigation, no restrictions on the types of lawsuits that may be funded, and no mini- mum or maximum funding amounts prescribed by law. 5.3 Contingency Fee Arrangement Following the enactment of the Legal Practitioners’ Practice (Amendment) Rules, 2025, contingency fees which were previously prohibited by Section 81 (1) (b) of the Legal Practitioners Act are now permitted. As such, a practitioner acting for a party in conten- tious proceedings can enter into a written agreement to charge contingency fees, provided the practitioner believes there are reasonable prospects of success. The agreement must disclose alternative funding options, the risk of adverse costs, and the possibility that the contingency fee may exceed fees ordinarily payable under the customary billing method. 5.4 Insurance There is currently no specific law governing the provi- sion or prohibition of insurance coverage for litigation, arbitration and ADR. Since Zambian law recognises the principle of freedom to contract, there is arguably scope for insurance companies to provide insurance cover for litigation, arbitration and ADR to parties.
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