The Applicant was successful in adding the Respondent as a necessary party to Arbitration, and subsequently sought Costs pursuant to Section 17(9) of the Arbitration Act, RSA 2000, C A-43.

The Applicant argued that Costs should be payable on a partial-indemnity basis in the amount of $190,576.29, being one half of their legal costs plus disbursements. Alternatively, the Applicant sought Costs in accordance with Schedule C in the amount of $170,905.81, which included Column 5 Costs with a multiplier of five and using the “Appeals” scale. The Respondent argued that only Schedule C Costs under Column 5 with a 1.25 multiplier for inflation and reduced disbursements were appropriate in the amount of $27,512.37.

After citing applicable case law referring to the necessity to conducting a Rule 10.2(1), 10.32, and 10.33 analysis to determine the reasonableness of Costs, the Court agreed with the Respondents. In particular, the Court found that solicitor-client costs were not appropriate in the circumstances and the factors found in cases where a multiplier of five, such as complete success on a novel issue, were not present in the case at bar. In the result, the Applicant was awarded total Costs of $27,512.37.