Alberta (Treasury Branches) v. 1401057 Alberta Ltd. et al., 2013 ABQB 748

JudgeWakeling, J.
CourtCourt of Queen's Bench of Alberta (Canada)
Case DateOctober 21, 2013
Citations2013 ABQB 748;(2013), 579 A.R. 152 (QB)

Alta. v. 1401057 Alta. (2013), 579 A.R. 152 (QB)

MLB headnote and full text

Temp. Cite: [2014] A.R. TBEd. JA.061

Alberta Treasury Branches (appellant/plaintiff) v. 1401057 Alberta Ltd. operating as Katch 22 and Tomita Eleanor Walker also known as Tomita Dix (respondents/defendants)

(1110 00801)

Alberta Treasury Branches (appellant/plaintiff) v. Tomita Eleanor Walker (respondent/defendant)

(1110 00802; 2013 ABQB 748)

Indexed As: Alberta (Treasury Branches) v. 1401057 Alberta Ltd. et al.

Alberta Court of Queen's Bench

Judicial District of Red Deer

Wakeling, J.

December 20, 2013.

Summary:

The Alberta Treasury Branch (ATB) lent money to the defendants. As the defendants failed to discharge their obligations under the loan agreements, the ATB commenced two proceedings seeking judgments against them. The defendants ultimately discharged their obligations to the ATB. Consent orders in both actions awarded "cost of this action on a solicitor and own client basis". The ATB submitted to the defendants the accounts of its legal counsel and demanded payment. As they were entitled to do under rule 10.13(1) of the Alberta Rules of Court, given their status as clients, the defendants obtained an appointment with the review officer. The review officer heard the parties and certified the amount to be paid for fees at roughly 50 percent of the amount the ATB paid its counsel. The ATB appealed.

The Alberta Court of Queen's Bench allowed both appeals and referred the matters to another review officer for reconsideration in accordance with the principles set out in this decision.

Practice - Topic 6921

Costs - General principles - General - The Alberta Court of Queen's Bench discussed the general principles governing court-ordered costs payable by a litigant to another litigant - The court identified 10 principles - See paragraphs 17 to 47.

Practice - Topic 7603

Costs - Taxation of costs - Considerations - The Alberta Treasury Branch (ATB) lent money to the defendants - As the defendants failed to discharge their obligations under the loan agreements, the ATB commenced two proceedings seeking judgments against them - The defendants ultimately discharged their obligations to the ATB - Consent orders in both actions awarded "cost of this action on a solicitor and own client basis" - The ATB submitted to the defendants the accounts of its legal counsel and demanded payment - As they were entitled to do under rule 10.13(1) of the Alberta Rules of Court, given their status as clients, the defendants obtained an appointment with the review officer - The review officer heard the parties and certified the amount to be paid for fees at roughly 50 percent of the amount the ATB paid its counsel - The ATB appealed - The Alberta Court of Queen's Bench allowed both appeals - The review officer breached several of the general principles governing costs - First, he did not comply with the first costs principle - He failed to recognize or give effect to the Court of Queen's Bench order entitling the ATB to its costs on "a solicitor and own client basis" - Second, the review officer did not comply with the third principle - He did not make his assessment in a principled manner and failed to assess the two matters before him on their merits - Third, he did not heed the seventh principle and conduct the inquiry suitable when a mortgagor had agreed to indemnify a mortgagee for the legal services the mortgagee incurred to protect its secured interests - Fourth, the review officer did not ask whether ATB sought indemnification for any step undertaken by its legal counsel which did not increase the likelihood the lender's security interest would be protected - Fifth, the review officer did not ask if the ATB sought indemnification for any costs associated with "any unusual or unnecessary expense" - See paragraphs 48 to 57.

Practice - Topic 7803

Costs - Solicitor and his own client costs - Entitlement to - General - [See Practice - Topic 7603 ].

Cases Noticed:

Rath & Co. v. Sweetgrass First Nation (2013), 559 A.R. 12; 2013 ABQB 165, refd to. [para. 1, footnote 1].

McLennan Ross v. Keen Industries Ltd. (1988), 86 A.R. 311 (C.A.), refd to. [para. 1, footnote 1].

Carter v. Blake (1982), 41 A.R. 418 (N.W.T.C.A.), refd to. [para. 16].

Repchuk v. Silverberg (2013), 563 A.R. 245; 2013 ABQB 305, refd to. [para. 16].

Fraser Milner Casgrain LLP v. Kristof Financial Inc. et al. (2012), 541 A.R. 245; 2012 ABQB 359, refd to. [para. 16].

Harrison v. Tew, [1990] 2 A.C. 523 (H.L.), refd to. [para. 18].

Olson v. Danoil Energy Ltd., [1993] 7 W.W.R. 385; 109 Sask.R. 234; 42 W.A.C. 234 (C.A.), refd to. [para. 18].

Peddle v. Toller (1830), 162 E.R. 1160, refd to. [para. 18].

Brounsall, Ex parte (1778), 98 E.R. 1385 (K.B.), refd to. [para. 19, footnote 5].

R. v. Gray's Inn (1780), 99 E.R. 227 (K.B.), refd to. [para. 19, footnote 5].

Hudson v. Slade (1862), 176 E.R. 174 (Q.B.), refd to. [para. 19, footnote 5].

Arrowsmith, Ex parte (1806), 33 E.R. 241 (Ch.), refd to. [para. 22].

Uxbridge (Earl), Ex parte (1801), 31 E.R. 1126 (Ch.), refd to. [para. 22].

Moor v. Row (1629-30), 21 E.R. 501 (Ch.), refd to. [para. 23, footnote 11].

Kennedy v. Broun (1863), 7 L.T.R. 626, refd to. [para. 23, footnote 11].

Bradford v. Woodhouse (1614-15), 79 E.R. 445 (K.B.), refd to. [para. 23, footnote 12].

Bossé v. Mastercraft Group Inc. et al. (1995), 80 O.A.C. 185; 123 D.L.R.(4th) 161 (C.A.), refd to. [para. 25].

Solicitors, Re, [1972] 3 O.R. 433 (T.O.), refd to. [para. 29, footnote 14].

Ship Kestrel, Re (1867), 16 L.T.R. 72 (Admir. Ct.), refd to. [para. 29].

Mayhew v. Adams, [1931] 1 D.L.R. 611 (Sask. C.A.), refd to. [para. 32, footnote 15].

Cotterell v. Stratton (1872), L.R. 8 Ch. 295 (C.A.), refd to. [para. 32, footnote 15].

Day, Ex parte (1908), 8 W.L.R. 536 (Alta. S.C.), refd to. [para. 33, footnote 16].

Imperial Elevator & Co. v. Olive (1914), 6 W.W.R. 1104 (Sask. S.C.), refd to. [para. 33, footnote 16].

Miller (Ed) Sales & Rentals Ltd. v. Caterpillar Tractor Co. et al. (1998), 216 A.R. 304; 175 W.A.C. 304 (C.A.), refd to. [para. 33].

Blue Range Resource Corp., Re (2001), 281 A.R. 351; 248 W.A.C. 351; 202 D.L.R.(4th) 523 (C.A.), refd to. [para. 34].

Enron Canada Corp. v. National-Oilwell Canada Ltd. - see Blue Range Resource Corp., Re.

Reilly, P.C.J. v. Wachowich, C.J.P.C., [2001] 1 W.W.R. 55; 266 A.R. 296; 228 W.A.C. 296 (C.A.), refd to. [para. 34].

Sidorsky et al. v. CFCN Communications Ltd. et al. (1997), 206 A.R. 382; 156 W.A.C. 382; 53 Alta. L.R.(3d) 255 (C.A.), refd to. [para. 34].

Canadian Commercial Bank (Liquidation), Re (1989), 98 A.R. 353; 61 D.L.R.(4th) 161 (C.A.), refd to. [para. 34].

Canadian Deposit Insurance Corp. v. Canadian Commercial Bank - see Canadian Commercial Bank (Liquidation), Re.

Jacobi v. Board of Education of Aqueduct Roman Catholic Separate School District No. 374 et al. (1994), 153 A.R. 241 (Q.B.), refd to. [para. 34].

Petrogas Processing Ltd. v. Westcoast Transmission Co. (1990), 105 A.R. 384; 73 Alta. L.R.(2d) 246 (Q.B.), refd to. [para. 34].

Reilly, P.C.J. v. Wachowich, C.J.P.C., [2000] 4 W.W.R. 92; 252 A.R. 293 (Q.B.), refd to. [para. 34].

Olson v. New Home Certification Program of Alberta (1986), 69 A.R. 356; 44 Alta. L.R.(2d) 207 (Q.B.), refd to. [para. 34].

Canadian Deposit Insurance Corp. v. Canadian Commercial Bank (1987), 76 A.R. 271 (Q.B.), refd to. [para. 34].

Jackson and Parkview Holdings Ltd. v. Trimac Industries Ltd. et al. (1993), 138 A.R. 161 (Q.B.), refd to. [para. 34].

Andrews v. Barnes (1888), 39 Ch. D. 133 (C.A.), refd to. [para. 34].

Central Mortgage & Housing Corp. v. Conaty (1967), 61 D.L.R.(2d) 97 (Alta. C.A.), refd to. [para. 35].

HSBC Bank Canada v. Lourenco et al. (2012), 549 A.R. 25; 2012 ABQB 648, refd to. [para. 35].

Kalke v. 213156 Holdings Ltd. (1983), 47 A.R. 215 (Q.B.), refd to. [para. 35].

Central Mortgage and Housing Corp. v. Johnson (1971), 20 D.L.R.(3d) 622 (Sask. C.A.), refd to. [para. 35].

Royal Bank of Canada v. Toews et al. (2007), 296 Sask.R. 129 (Q.B.), refd to. [para. 35].

Collins v. Forest Hill Investment Corp., [1967] 2 O.R. 351 (Co. Ct.), refd to. [para. 35].

District Bank Ltd. v. Adelphi Hotel (Brighton) Ltd., [1953] 2 All E.R. 498 (Ch.), refd to. [para. 35].

Griffith Jones & Co., Re (1883), 50 L.T.R. 434 (C.A.), refd to. [para. 35].

Morrison v. Pantony (Rod) Professional Corp. (2008), 429 A.R. 259; 421 W.A.C. 259 (C.A.), refd to. [para. 35].

AGF Trust Co. v. Soos, [2012] A.R. Uned. 815; 2012 ABQB 747 (Master), refd to. [para. 35].

Zero Stores (Sask.) Ltd. v. K.A.H. Investments Ltd. et al. (1983), 44 A.R. 30 (C.A.), refd to. [para. 37, footnote 17].

Bank of Nova Scotia v. Romaine (1988), 89 A.R. 304 (Q.B. Master), refd to. [para. 37, footnote 17].

Canadian Deposit Insurance Corp. v. Canadian Commercial Bank (1999), 243 A.R. 168 (Q.B.), refd to. [para. 37, footnote 17].

Manufacturers Life Insurance Co. v. Toronto-Dominion Bank (1988), 92 A.R. 92 (C.A.), refd to. [para. 37, footnote 18].

369413 Alberta Ltd. v. Pocklington, [1999] A.R. Uned. 583; 79 Alta. L.R.(3d) 222 (Q.B.), refd to. [para. 37, footnote 18].

383618 Alberta Ltd. v. National Quick-Freeze & Produce Ltd. et al. (1995), 173 A.R. 9 (Q.B.), refd to. [para. 37, footnote 18].

Credit Foncier Trust Co. v. Hornigold (1984), 59 A.R. 103; 35 Alta. L.R.(2d) 341 (Q.B.), refd to. [para. 37, footnote 18].

Manufacturers' Life Insurance Co. v. Independent Investment Co., [1939] 4 D.L.R. 811 (B.C.S.C.), refd to. [para. 37, footnote 18].

CIBC Mortgages Inc. v. Walji (2001), 287 A.R. 135; 2001 ABQB 169 (Master), refd to. [para. 37, footnote 19].

Bank of Hamilton v. Leslie (1906), 7 Terr. L.R. 303, refd to. [para. 37, footnote 19].

Canada Permanent Trust Co. v. Bernhardt, [1978] 6 W.W.R. 393 (B.C.S.C.), refd to. [para. 37, footnote 19].

Cottrell v. Finney (1874), 43 L.J. Ch. 562 (C.A.), refd to. [para. 37, footnote 19].

Detillin v. Gale (1802), 32 E.R. 234 (Ch.), refd to. [para. 37, footnote 19].

Fleck v. Whitehead, [1924] 4 D.L.R. 797, refd to. [para. 40].

Canadian Mortgage Investment Co. v. Baird (1916), 30 D.L.R. 275 (Alta. S.C.), refd to. [para. 40].

Saskatchewan Trust Co. (Liquidation) v. Dion et al. (1994), 127 Sask.R. 64 (Q.B.), refd to. [para. 40].

Alberta Provincial Judges' Association v. Alberta (1999), 250 A.R. 145; 213 W.A.C. 145 (C.A.), refd to. [para. 40].

Peel v. London and North Western Railway, [1907] 1 Ch. Div. 607 (H.C.), refd to. [para. 40].

Kirkwood v. Webster (1878), 9 Ch. D. 241 (H.C.), refd to. [para. 40].

Forster v. Davies (1863), 33 L.J. Ch. 185, refd to. [para. 40].

Goodwin v. Storrar, [1947] 1 K.B. 457, refd to. [para. 42].

Magee v. Ottawa (City) Roman Catholic Separate Schools (1962), 32 D.L.R.(2d) 162 (Ont. H.C.), refd to. [para. 42].

Cohen, Re, [1905] 2 Ch. 137 (C.A.), refd to. [para. 42].

Brown, Re (1867), L.R. 4 Eq. 464 (Ch.), refd to. [para. 42].

Neuman v. Payne (1793), 29 E.R. 930 (Ch.), refd to. [para. 44].

Balme v. Paver (1821), 37 E.R. 866 (Ch.), refd to. [para. 44].

J.W. v. Victims of Crime Financial Benefits Program (2013), 560 A.R. 114; 2013 ABQB 212, refd to. [para. 52].

Harelkin v. University of Regina, [1979] 2 S.C.R. 561; 26 N.R. 364, refd to. [para. 58].

Authors and Works Noticed:

Abel-Smith, Brian, and Stevens, Robert, Lawyers and the Courts: A Sociological Study of the English Legal System 1750-1965 (1967), p. 412 [para. 21, footnote 8].

Abrams, Linda S., and McGuinness, Kevin P., Canadian Civil Procedure Law (2nd Ed. 2010), pp. 1456 [para. 33]; 1457 [para. 35].

Baker, John, An Introduction to English Legal History (1971), p. 71 [para. 21, footnote 9].

Cameron, J., The Principles of the Law of Costs (1901), p. 222 [para. 43].

Goodhart, Arthur, Costs (1929), 38 Yale L.J. 849, pp. 852 [para. 32]; 854 [para. 25, footnote 13].

Halsbury's Laws of England (3rd Ed. 1955) (1961 Update), vol. 36, p. 4-5 [para. 19, footnote 5].

Halsbury's Laws of England (1995) (4th Ed. - Reissue), vol. 44(1), pp. 7 [para. 21, footnotes 9, 10]; 8, 12 [para. 21, footnote 10].

Halsbury's Laws of England (2005) (4th Ed. - Reissue), vol. 3(1), pp. 381 [para. 19, footnote 5]; 466 [para. 21, footnote 8].

Holdsworth, William Searle, A History of English Law (1924), vol. 6, pp. 434 [para. 19, footnote 5]; 437, 438, 440 [para. 21, footnote 9].

Holdsworth, William Searle, A History of English Law (1938), vol. 12, pp. 63 to 66 [para. 21, footnote 10]; 69 [para. 33, footnote 16].

Horne, Fred, Cordery's Law Relating to Solicitors (8th Ed. 1988), p. 195 [para. 44].

Marchant, James Robert Vernam, An Essay on the Legal Position of Counsel in England (1905), pp. 30 [para. 19, footnote 5]; 42 [para. 21, footnote 9]; 51 [para. 24].

Marchant, James Robert Vernam, An Essay on the Legal Position of Counsel in the English Legal System (1905), p. 33 [para. 19, footnote 5].

Morgan, George, and Wurtzburg, Edward, A Treatise on the Law of Costs in the Chancery Division of the High Court of Justice (2nd Ed. 1882), generally [para. 32]; p. 1 [para. 25, footnote 13].

Orkin, Mark M., The Law of Costs (2nd Ed.) (2010 Looseleaf Supp.), vol. 1, pp. 2-11 [para. 33]; 2-239 [para. 37, footnotes 18, 19].

Pocock, William, The Principles of the Law of Costs Under the Judicature Acts (1881), p. 1 [para. 25, footnote 13].

Stevenson, William A., and Côté, Jean E., Civil Procedure Encyclopedia (2003), vol. 4, p. 71-9 [para. 49, footnote 27].

Counsel:

Wesley M. Pedruski, Q.C. (Reynolds Mirth Richards & Farmer LLP), for the appellant;

Christopher E. Forgues, for the respondents.

These appeals were heard on October 21, 2013, by Wakeling, J., of the Alberta Court of Queen's Bench, Judicial District of Red Deer, who delivered the following reasons for decision on December 20, 2013.

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