4.24: Formal offers to settle
4.29: Costs consequences of formal offer to settle
10.29: General rule for payment of litigation costs

Case Summary

Judgment in this Action was granted in favour of 956126 Alberta Ltd. (“956”) following a Summary Trial. The Counterclaim against 956 and Jae Soo Doh (“Mr. Doh”) was dismissed. As successful parties, 956 and Mr. Doh applied for Costs.

The Court noted that pursuant to Rule 10.29, a successful party is usually entitled to Costs against the unsuccessful party, subject to the Court’s discretion. With respect to the initial claim, 956 was awarded Costs in Column 2 of Schedule C of the Rules, as the Court determined that the full amount awarded to 956, including interest, would be below $200,000. The Court also found that, in respect of awarding Costs for the unsuccessful Counterclaim, Costs in Column 2 fairly reflected the complexity, legal expense and true measure of the financial interests raised by the Statement of Claim and Counterclaim.

With respect to the Former Offer to Settle (the “Offer”) provided by 956 and Mr. Doh, which would have resolved the Statement of Claim and Counterclaim, the Court found that the Offer complied with the requirements under Rule 4.24. The Offer was rejected. The Court noted that in accordance with Rule 4.29, 956 and Mr. Doh were entitled to double Costs for all steps taken in relations to the Statement of Claim and Counterclaim following service of the Offer. The Court further noted that no “special circumstances” as contemplated by Rule 4.29(4)(e) were identified. The Court ordered double Costs for Mr. Doh and 956 for all steps in the Action after the issuing of the Offer.

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