LAW SOCIETY OF ALBERTA v BILLINGSLEY, 2026 ABCA 268

The Applicant, the Law Society of Alberta, sought an Order pursuant to Rules 4.22 and 14.67 for Security for Costs in respect of an Appeal filed by the Respondent, a formerly practicing lawyer.

The underlying Action concerned the custodianship of the Respondent’s former law practice. The Chambers Justice granted an Order approving the distribution of the funds remaining in the Respondent’s trust account pursuant to Section 95(5)(c) of the Legal Profession Act, RSA 2000, c L-8 (the “Order”). The Respondent appealed the Order on several grounds.

The Applicant argued that Security for Costs was warranted in light of, among other things, the Respondent’s Affidavit evidence regarding his limited financial means and his failure to pay an outstanding Costs Award of $400.

Appeal Justice Fagnan considered the factors set out in Rule 4.22 and the governing test for Security for Costs. The Court found that the Applicant’s submissions met the criteria for an Order for Security for Costs in some amount. In particular, Fagnan J.A. opined that each of the grounds of appeal advanced by the Respondent was unlikely to succeed. Fagnan J.A. also noted that, notwithstanding the steps the Respondent had taken to improve his financial circumstances, he continued to have limited means.

The Court declined, however, to award the $10,500 sought by the Applicant, emphasizing that an Order for Security for Costs must not unduly prejudice the Respondent’s ability to continue the Action.

Fagnan J.A. instead ordered the Respondent to post Security for Costs in the amount of $3,025, consisting of $1,000 for costs of this Application and $2,025 for costs of the Appeal, within four weeks. If this Security for Costs was not paid within that time, the Respondent’s Appeal would be deemed abandoned pursuant to Rule 14.67(2).