Background:
- Man-Shield Construction appealed a partial summary judgment awarded to Tempo Electrical Contractors for $678,261.
- After the appeal was dismissed, the parties could not agree on the cost award, leading to further court proceedings.
Key Issues:
- Should costs be awarded based on a percentage of legal fees or under the standard Schedule C of the Alberta Rules of Court?
- Tempo's Position: Tempo sought $71,953.86 (50% of solicitor-client costs, plus disbursements), citing complexity, offers to settle, and Man-Shield’s delays.
- Man-Shield's Position: Man-Shield argued for Schedule C costs, totaling $4,425, claiming the case wasn’t unusually complex and that some costs were for actions outside of the appeal.
Court’s Analysis:
- The court found Tempo's request for a percentage of solicitor-client fees inappropriate, as the submitted bills did not differentiate between appeal-related and general litigation services.
- Man-Shield’s conduct, including the submission of unorganized evidence (a "document dump"), contributed to higher costs for Tempo but did not justify full solicitor-client costs.
- A lump sum award of $10,000, covering disbursements and GST, was deemed reasonable.
Outcome:
- Lump sum costs of $10,000 awarded to Tempo.
This decision balances reasonable litigation costs while addressing inefficiencies and delays caused by both parties.
