ROYAL BANK OF CANADA v LEARMONTH, 2014 ABQB 756
NIELSEN J
10.9: Reasonableness of retainer agreements and charges subject to review
Case Summary
The Plaintiff appealed a Master’s Decision to grant Costs on a full indemnity basis in relation to a redemption Order in foreclosure proceedings. The Master found that a term in the mortgage which provided for full indemnity costs was an attempt to contract out of consumer protection legislation and Rule 10.9. The Master concluded that the Court should always retain its jurisdiction to review Costs.
On Appeal, Justice Nielsen found that the Royal Bank of Canada always contemplated that its claim for Costs on a full indemnity basis would be reviewed by a Review Officer, having regard to the form of the Order, which referred to a review by the Assessment Officer prior to the entry of the Order and provided that the Costs would be “assessed at a future date”. Nielsen J. noted that there was no basis for the Master to conclude that the Royal Bank of Canada sought to oust the jurisdiction of the Court to review its claim for Costs. In the result, Nielsen J. allowed the Appeal and ordered Costs on a full indemnity basis, subject to review by a Review Officer.
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