The parties had been unable to settle the issue of Costs since the Court’s Decision to allow the Appeal of 12-10 Capital Corp. (“Capital Corp”), in Qualex-Landmark Towers Inc v 12-10 Capital Corp, 2024 ABCA 115.

The Applications Judge issued an Order releasing the Respondent's registered certificate of lis pendens (“CLP”) on Capital Corp’s lands and dismissed the Application for an Attachment Order. The Applications Judge instructed the Respondent to bear the Costs related to both the CLP Application and the subsequent Application. The Chambers Judge did not intervene with the Applications Judge's Decision on Costs. However, the Chambers Judge granted the Respondent’s Application to amend pleadings and the Attachment Order sought in the Appeal of the Applications Judge’s Decision. Pursuant to Rule 14.88, the Chambers Judge determined that the Respondent, as the prevailing party in the Appeal, was entitled to recover Costs, but the specific amount was not determined. The Chambers Judge’s Decision was appealed and reversed by the Court of Appeal.

The Appellants sought solicitor-client Costs amounting to $328,790 for the Appeal and both Applications heard in the Court of Kings Bench. The Appellants argued that extraordinary Costs were warranted since the Respondent engaged in a series of behaviours that constituted an abuse of process. The Respondent acknowledged that the Appellants were entitled to Costs for the successful Appeal but contended that Costs should be evaluated according to Column 5 of Schedule C, disputing the justification for claims of misconduct.

The Court resolved the remaining Costs matters concerning the Appeal and previous proceedings. Citing Clearbakk Energy Services Inc v Sunshine Oilsands Ltd, 2023 ABCA 96, the Court concluded that with the reversal of the Chambers Judge’s Decision on Appeal, the grounds for awarding Costs in favour of the Respondent no longer applied. The Court ruled that the Appellants are entitled to Costs according to Column 5 of Schedule C, as solicitor-client Costs are typically granted only in extraordinary cases involving egregious behavior.

As a result, the Court allowed the Appeal. Pursuant to Rule 10.29, the Appellants were entitled to Costs for both the Appeal and the proceedings before the Chambers Judge.