The Court of Appeal panel dismissed Geophysical Service Incorporated’s (GSI) Appeal of a Chambers Judge’s Order summarily dismissing their claim against the Respondents. The Court did not immediately address Costs because the Chambers Judge first had to determine Costs payable in the Court below. The Chambers Judge awarded Costs on a scale of double Column 5 of Schedule C, which the parties agreed also applied to the Appeal. However, the parties could not agree on two issues: (a) the impact of a formal offer served by each of the Respondents two days before filing their factum (First Issue), and (b) whether one Respondent was entitled to claim fees for a second counsel for the Appeal (Second Issue).

On the First Issue, the parties agreed that the principles outlined in H2S Solutions Ltd v Tourmaline Oil Corp, 2020 ABCA 201 (H2S) applied. The court in H2S considered Rules 4.29 and 14.59 and held that the primary factors to consider in determining whether a party is entitled to double costs includes the timing of the offer, the content of the offer, whether the offer is beyond de minimis, and any special circumstances. After considering the H2S factors, the Court found that the Respondents were entitled to double Costs for preparation of the factum. On the Second Issue, the Court held that the Respondent was not entitled to claim fees for second counsel in the circumstances of the case.