(1) This rule applies if, after a Notice Disputing Itemised Costs Account was filed under subrule 12.37(3), a party or a party's lawyer:
(a) fails to comply with these Rules or an order; or
(b) puts another party to unnecessary or improper expense or inconvenience.
(2) The Judicial Registrar may:
(a) order the party to pay costs; or
(b) disallow all or part of the costs in the itemised costs account.