LC v ALBERTA, 2015 ABQB 84


1.2: Purpose and intention of these rules
4.16: Dispute resolution processes
10.31: Court-ordered costs award
SCHEDULE C: Tariff of Recoverable Fees

Case Summary

Plaintiffs’ counsel, Robert Lee, in his personal capacity, sought enhanced Costs for having to prepare for an abandoned Application brought by the Government Defendants. The Defendants originally sought an Order for enhanced Costs from Mr. Lee in his personal capacity for allegations he made against Government employees in a number of proposed amendments to the Statement of Claim.

Graesser J. noted that Item 7(3) of Schedule C allows 50% Costs for abandoned Applications. His Lordship stated that the threshold for applying Item 7(3) of Schedule C is that the Application be in keeping with Rule 1.2: that it is bona fide and not frivolous or vexatious. Justice Graesser noted that Schedule C is the norm in Costs awards, although the Court can depart from this in appropriate circumstances, pursuant to Rules 10.31(3) and 10.31(1). Graesser J. considered whether the Defendants’ Application to seek Costs from Mr. Lee personally was reasonably justified. The Court reviewed correspondence between the parties, including an offer of compromise from the Defendants which was rejected by the Plaintiffs. The Court noted that offers of compromise are to be encouraged under Rule 4.16(1), which Rule makes good faith participation in a dispute resolution process mandatory unless waived by the Court. The Court was satisfied that the Defendants’ Application was brought for a valid purpose, and Mr. Lee’s Application for enhanced Costs was dismissed.

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