YAKUBOW v EDMONTON GRANITE MEMORIALS LTD, 2026 ABKB 613

This decision addressed pre-judgment interest and costs following the Plaintiff’s success at a constructive dismissal Trial.

Justice Oviatt applied the midpoint approach in Christianson v North Hill News Inc., 1993 ABCA 232 and directed that pre-judgment interest run from September 10, 2023, the midpoint of the 15-month notice period.

Pursuant to Rule 10.29, the Court found that the substantially successful Plaintiff was entitled to costs. In applying Rule 10.33, the Court considered the Plaintiff’s degree of success, the amount claimed and recovered, the importance and complexity of the issues, and the parties’ efforts to streamline the action. Although the Plaintiff succeeded on constructive dismissal, the Plaintiff did not recover aggravated or punitive damages and received substantially less than the amount claimed.

Rule 10.31(3)(a) permitted the Court to award costs with or without reference to Schedule C. The Court used Column 2 but reduced the Trial preparation item by 50% because the streamlined Trial lasted one day, involved two witnesses, and was supported by separately compensable written briefs. The Court also allowed $1,000 for preparation of the Agreed Statement of Facts because it materially improved Trial efficiency, despite not being an itemized step in Schedule C.

The Court declined to award enhanced costs pursuant to Rule 4.29 because the Plaintiff’s $180,000 Formal Offer to Settle exceeded the $149,812.50 Judgment. Justice Oviatt held that the automatic double-cost consequences of Rule 4.29 apply only when a party obtains a result more favourable than its Formal Offer and found no basis to award enhanced costs otherwise. The Court awarded costs and disbursements of $25,984.11.