Eamon J

3.10: Application of Part 4 and Part 5
9.4: Signing judgments and orders
10.29: General rule for payment of litigation costs
10.31: Court-ordered costs award
10.33: Court considerations in making costs award

Case Summary

The Applicant, Chartered General Accountants of Alberta (“CGAA”), sought to enforce fines that the Respondent had agreed to pay pursuant to a sanction agreement under the Chartered Professional Accountants Act, SA 2014, c C-102. The Respondent, who was bankrupt, argued that the fines were provable claims in bankruptcy and could not be collected outside of his bankruptcy proceedings. After deciding that the Applicant’s fines were not provable claims in bankruptcy in an earlier proceeding, Justice Eamon turned to the issue of Costs.

First, although the Respondent argued that the CGAA’s refusal to produce its complaint files barred it from relying on the records to prove Costs, Justice Eamon noted that pursuant to Rule 3.10, mandatory pre-hearing disclosure was not required at the hearing unless otherwise ordered.

Second, Justice Eamon considered the Applicant’s argument that it incurred additional service and other expenses because the Respondent had not been cooperative and avoided service. His Lordship ordered that those disbursements be included in the Costs award, as the Respondent should have responded to his Regulator.

His Lordship then noted that pursuant to Rule 10.29, the successful party in a proceeding is generally entitled to a Costs award against the other party or parties, subject to the Court’s consideration of the factors listed in Rule 10.33, and the Court’s discretion pursuant to Rule 10.31. If no other considerations are present, then Costs should be awarded to the successful party even if it is not entirely successful on every issue in the Action. In this case, Justice Eamon held that the default rule should not be departed from, and awarded Costs to the Applicant pursuant to Column 2 of Schedule “C”, as well as reasonable disbursements.

Justice Eamon also invoked Rule 9.4(2)(c) in the Order, such that the Respondent’s approval as to the form of Order would not be required.

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