The case Star Energy Canada Inc v Builders Energy Services Ltd (2023 ABKB 641) involves an appeal by Mr. Timothy Ulmer regarding a court order enforcing his personal undertaking to pay $22,500 in costs to Builders Energy Services Ltd. (BES).
Key points
- Undertaking: In 2015, Ulmer, director of Star Energy Canada Inc., agreed to pay BES’s costs up to $22,500 if awarded against Star Energy. He acknowledged understanding the undertaking after legal advice.
- Costs Award: In 2021, BES successfully applied to dismiss Star Energy’s lawsuit for delay, resulting in a costs award against Star Energy. When Star Energy didn’t pay, BES sought to enforce Ulmer’s personal undertaking.
- Application Judge’s Decision: The judge enforced the undertaking, dismissing concerns about the doctrine of functus officio, which limits a court’s ability to revisit final decisions. The judge found that the court retained jurisdiction to enforce the undertaking and granted a judgment against Ulmer for $22,500.
- Appeal: Ulmer argued the judge was functus officio after the costs award, but the court held that Alberta Rules of Court (Rules 9.14 and 10.30) allow cost-related orders even after a final judgment. The appeal was dismissed, and BES was awarded costs.
In conclusion, the court upheld the enforcement of Ulmer’s personal promise to pay costs, interpreting it as an obligation independent of the initial costs award.
