10.29: General rule for payment of litigation costs
10.33: Court considerations in making costs award

Case Summary

This Costs ruling arose from a Decision related to an employment matter. The Court considered the general Costs rule under Rule 10.29 that the successful Party to an Application or Action is entitled to Costs, subject to the Court’s discretion. The Court also reviewed Rules 10.33(1) and 10.33(2) and highlighted factors that a Court considers in making a Costs Award, including: the degree of success of each party, the amount claimed versus the amount recovered, the complexity of the Action, the conduct of the parties within the litigation, and settlement offers exchanged by the parties prior to the Trial.

Further, the Court noted that the use of Schedule C is not mandatory and cited the Court of Appeal Decision in McAllister v Calgary (City), 2021 ABCA 25, which endorsed “ordinary-course indemnification to successful parties, prima facie, in the range of 40-50% of actual Costs”.

The Court found that the Plaintiff was substantially successful as he had won on the biggest issues and recovered about 80% of his last offer to settle made to the Defendant. At the same time, the Court held that the offers to settle exchanged between the parties prior to Trial and the Plaintiff’s allegations of litigation conduct on the part of the Defendant, did not significantly impact its Costs Decision.

The Court did not award Costs to the successful Plaintiff pursuant to Schedule C, but awarded him a lump sum of $35,610, approximately 45% of the solicitor-client Costs, payable forthwith.

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