INTACT INSURANCE COMPANY v 1063878 ALBERTA LTD

This Application was in respect of Costs. In this case, the Court found that the most important factors were the result of the action and the amount claimed, the conduct of the parties, the complexity of the action, and the offer to settle. The Court emphasized that costs awards are governed by Rule 10.33 of the Rules of Court, which provides a non-exhaustive list of factors to consider.

The Respondent was successful at both the Application and Appeal stages, and the Appellants were aware of the potential for significant costs awards if they were unsuccessful. The Court noted that the matter was not particularly complex, involving straightforward contractual interpretation. However, the Appellants pursued the case on principle despite the financial risks, and the Respondent incurred significant legal costs in doing so. The amount of Applications Judge Birkett’s actual award was relatively small, $40,000. The Court found that the Appellants should have considered their legal costs as well as a possible award of costs against them before deciding to pursue an appeal, but failed to do so.

Both parties were criticized for failing to resolve the matter earlier, which would have reduced costs. The Respondent's offer to settle for $170,000 was reasonable, but the Court declined to award double costs, as the Respondent could have mitigated their costs by cooperating with the Appellants during negotiations. Ultimately, when the Court weighed all the factors, it awarded the Respondent 60% of their reasonable legal costs as determined by an Assessment Officer and declined to award double costs if the Assessment Officer finds more than $71,728 in costs.