The Applicant commenced an Action for misappropriation of funds. The Respondent failed to satisfy multiple Undertakings related to the alleged misappropriation, despite several Court Orders issued to compel answers.

Following three Contempt Applications, the Respondent was found to have provided inadequate answers to 35 Undertakings. The Respondent asserted that all Undertakings were answered in accordance with Alberta law, whereas the Applicant maintained that the responses given were insufficient.

Associate Chief Justice Nixon outlined the relevant provisions of the Rules pertaining to Civil Contempt of Court, specifically Rules 10.51, 10.52, and 10.53, which address the Order to Appear, Declarations of Civil Contempt, and Punishments for Civil Contempt of Court. Associate Chief Justice Nixon clarified that the purpose of civil contempt is to ensure compliance with Court Orders and uphold the authority of the Court. Citing Schitthelm v Kelemen, 2013 ABQB 42, Nixon A.C.J. outlined the three elements required to prove civil contempt: (i) an existing requirement of the Court, (ii) proper notice of this requirement to the alleged contemnor, and (iii) an intentional act or failure to act that breaches this requirement without a valid excuse.

After evaluating each of the Undertakings, Nixon A.C.J. found that adequate answers were provided for only three of them. The Respondent failed to exercise due diligence or follow Court directions and, by neglecting to address 32 of the Undertakings, severely prejudiced the Applicant’s claims. Additionally, the Respondent was deliberately evasive, late, and non-responsive, indicating a deliberate attempt to avoid fulfilling his obligations.

Consequently, Nixon A.C.J. found the Respondent in civil contempt for willfully failing, neglecting, or refusing to provide answers to the Undertakings, in violation of four previous Court Orders. The Court noted that the Respondent had an overall failure rate of 6.64% (calculated based on the 32 insufficiently answered Undertakings out of the total 482) and directed the parties to provide further submissions on the appropriate level of punishment.