ALBERTA TREASURY BRANCHES v 14010507 ALBERTA LTD (KATCH 22), 2015 ABQB 548

WAKELING JA (Ex Officio)

10.30: When costs award may be made
10.3: Lawyer acting in representative capacity
10.31: Court-ordered costs award
10.34: Court-ordered assessment of costs

Case Summary

The Court previously allowed Appeals against two Decisions of a Review Officer certifying legal fees pursuant to Costs awarded on a solicitor-client basis. The parties were unable to agree on the form of Order and requested that the Court finalize its terms.

Under the agreements between the parties, the Plaintiff, (ATB) was entitled to full indemnification of legal fees. Wakeling J.A. cited Rules 10.30 and 10.31 as the governing Rules, noting that generally, a Court will enforce a fee indemnification agreement unless there is a compelling reason not to grant full indemnity, such as when an indemnitee has acted unreasonably. It was not disputed that the fees sought by ATB were stipulated legal services. Justice Wakeling held that ATB had not acted unreasonably and there was no compelling reason not to enforce the fee indemnification provisions in the agreements between the parties. Further, ATB had complete success before the Court. Accordingly, Wakeling J.A. held that ATB was entitled to a costs award for full indemnity of the amounts paid to its legal counsel, and if the parties could not agree on Costs, they could apply pursuant to Rule 10.34(1) for an assessment of Costs.

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