The Plaintiff was involved in a rear-end motor vehicle collision in March 2009, resulting in a whiplash injury and chronic pain. The Plaintiff was awarded $471,298 after a two-week Trial. The Plaintiff sought costs of $233,300, disbursements of $160,533 and pre-judgment interest of $47,966.

The Plaintiff did not disclose a Bill of Costs but calculated their baseline Schedule C costs at $116,650. The Plaintiff then proposed a further doubling of this amount as an “inflation adjustment”, resulting in the proposed total of $233,300. This further enhancement was premised on the Schedule C tariff being outdated and inadequate, and on previous Alberta jurisprudence.

The Court noted that in making a Costs Award, it must consider the factors in Rule 10.33. Further, the Court noted that the Plaintiff’s award for damages bested a formal offer made by the Defendant in May 2021, activating their entitlement to double costs pursuant to Rule 4.29(1). The Court also considered second counsel costs, noting that the key to assessing second counsel fees lies in a Trial Judge’s discretion to assess the value added by junior counsel, being cases where: (i) second counsel was clearly a luxury and not required by the nature of the proceeding; (ii) second counsel was obviously justified; and (iii) the assistance of second counsel was valuable but not essential.

In making its Costs Award, the Court noted that the costs sought by the Plaintiff were excessive. The Court found that the “double doubling” sought by the Plaintiff would produce over-indemnification. Moreover, the claimed costs and disbursements would total nearly $400,000 in connection with an award of $470,000, which seemed disproportionate. The Court added a discretionary amount for second counsel, stating that while their presence was not strictly necessary, both sides thought it appropriate to have two counsel, and it was readily apparent to the Court that in observing the conduct of the Trial, second counsel added value on both sides.

The Plaintiff was therefore awarded costs of $111,800.