4.29: Costs consequences of formal offer to settle
10.29: General rule for payment of litigation costs
10.31: Court-ordered costs award
10.33: Court considerations in making costs award
14.88: Cost awards

Case Summary

The Respondents had successfully defeated the Appellants’ Appeal in an earlier Decision from the Alberta Court of Appeal, and were seeking enhanced Costs pursuant to Rule 4.29. The Respondents had made a Formal Offer under Rule 4.29(1) related to the Appeal. As the successful Party, the Respondents were seeking double Costs. As the successful party, the Respondents were entitled to Costs as set out under the appropriate schedule of fees for the Appeal, authorized by Rule 14.88(1). The Court of Appeal noted that the ordinary discretion as to Costs is under Schedule C at partial indemnity (between 30% and 50%) under Rules 10.29, 10.31 and 10.33.

The Court of Appeal awarded double Costs pursuant to Rule 4.29(1). The Court rejected the Appellants’ argument that the Respondents’ offer relating to the Appeal was not a genuine offer. The Court also rejected the Appellants’ argument that the double Costs should not be awarded because, while unsuccessful, the Appeal was not unsound. The Respondents were successful in the Appeal, and had made a genuine Offer that the Appellants rejected. The Respondents were entitled to a double Costs Award.

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