The Defendant sought Costs against the Plaintiff law firm, after the Plaintiff had advanced a claim for $106,250.00, but only received a Judgment of $5,250.00, and after the Defendant had previously made an informal offer of $10,000.00.

The Court awarded Costs to the Defendant, and made the following findings in obiter:

(a)    should the Plaintiff have received Costs, those Costs would have been reduced by 25% as the amount of the Judgment fell within the limit of the Civil Division of the Provincial Court of Alberta: Rule 10.42;

(b)   Rule 10.22 ensures “that no lawyer will take a legal judgment for fees against a client without a frank and clear review of that judgment by the Courts”; and,

(c)    Rule 10.50, which allows Costs to be awarded against a lawyer, can be punitive, whether intentional or not.