## Order No. 2007-1 ## Source details **Canonical URL:** [Order No. 2007-1](https://www.imf.org/-/media/files/imfat/o2007-1.pdf) ## Other formats - [Markdown version](/-/media/files/imfat/o2007-1.pdf.md) - [Structured JSON version](/-/media/files/imfat/o2007-1.pdf.json) --- ### Background and procedural history - The Administrative Tribunal of the International Monetary Fund decided in Ms. “M” and Dr. “M”, Applicants v. International Monetary Fund, Respondent, IMFAT Judgment No. 2006-6 (November 29, 2006), that the Applicants’ application was well-founded and invited Applicants to submit a statement of legal costs incurred (Decision, para. 4). - The Applicants submitted a statement of costs; the Fund responded. The Tribunal considered those submissions and adopted the decision set out below. ### Subject matter and factual findings - The Applicants contested Fund decisions denying requests to give effect under Section 11.3 of the Staff Retirement Plan (“SRP” or “Plan”) to a series of child support orders by deducting support payments for Ms. “M” from the SRP pension benefits of Mr. “N”, a retired participant in the Plan. - SRP Section 11.3(b) permits a spouse or former spouse or a child or children, or parents or guardians acting on their behalf, to make a request to the Administration Committee where a participant or retired participant fails to submit a timely written direction in compliance with the court order. - Dr. “M”, who had never been a spouse of Mr. “N”, acted pursuant to Section 11.3(b) solely as a parent on behalf of her child Ms. “M”. It was found that Dr. “M” conducted, on behalf of Ms. “M” (a minor until January 9, 2002), all communications with the Fund associated with Applicants’ three requests. - For the Tribunal proceedings, Applicant Ms. “M” designated Applicant Dr. “M” as her representative and counsel, pursuant to Rule VII, para. 1 of the Administrative Tribunal’s Rules of Procedure. Dr. “M”, an attorney, provided legal services on behalf of Ms. “M”. - It was not contended that Ms. “M” ever paid, or was obligated to pay, for the legal efforts of Dr. “M” in pressing claims with the Fund and before the Tribunal. ### Legal issue: compensable legal costs under Article XIV, Section 4 - Article XIV, Section 4 of the Tribunal’s Statute provides: - “If the Tribunal concludes that an application is well-founded in whole or in part, it may order that the reasonable costs incurred by the applicant in the case, including the cost of applicant's counsel, be totally or partially borne by the Fund, taking into account the nature and complexity of the case, the nature and quality of the work performed, and the amount of the fees in relation to prevailing rates.” - The Tribunal has recognized that the overriding purpose of Article XIV, Section 4 is to “provide for cost-shifting in favor of prevailing applicants, thereby increasing access to the Tribunal for aggrieved staff members.” (Mr. “V”, Applicant v. IMF, IMFAT Judgment No. 1999-2 (August 13, 1999), para. 138). - The Fund accepted payment of Applicants’ expenses for copying, mail/courier charges, translation, and notarization, totaling €1,031.85, but opposed payment for attorney’s hours claimed by Dr. “M” on the ground that she acted pro se and the costs were not “costs incurred” within the plain meaning of Article XIV, Section 4. ### Tribunal reasoning on “costs incurred” - The Fund argued the ordinary meaning of “the reasonable costs incurred by the applicant in the case” denotes the cost that the applicant has paid or undertaken to pay for legal representation. - The Tribunal distinguished prior authority involving hired counsel and concluded that Applicants nevertheless “incurred” a cost in the expenditure of Dr. “M”’s time and skill as an attorney over a period of years — time which she otherwise could have devoted to other remunerative work. - The Tribunal cited analogy to IMFAT Judgment No. 2004-1 (Mr. “R” (No. 2)) where the Tribunal awarded an approximation of indirectly incurred costs. ### Assessment and decision: amounts awarded - Taking into account the nature and complexity of the case, the nature and quality of the work performed, and the amount of the fees in relation to prevailing rates, the Administrative Tribunal assessed the reasonable costs of Applicants’ legal representation as follows: - Attorney fees: Applicants submitted 49.5 hours at the rate of €300.00, totaling €14,850.00; the Tribunal assessed the reasonable costs in the amount of €14,850.00 (i.e., the total amount submitted). - Expenses accepted by the Fund: copying, mail/courier charges, translation, and notarization totaling €1,031.85. - Total compensable legal costs ordered to be paid by the Fund: €15,881.85. ### Order and disposition - The Administrative Tribunal orders that the Fund shall pay the Applicants in total €15,881.85 in compensable legal costs. --- _Source: https://www.imf.org/-/media/files/imfat/o2007-1.pdf_