Northern Air Charter (P.R.) Inc. ("Northern Air") filed for judicial review in 2017, challenging Alberta Health Services' (AHS) decision to award an air ambulance service contract to Can-West Corporate Air Charters Ltd. ("Can-West").
Northern Air alleged AHS acted unfairly and breached its duty of good faith.
The litigation dragged on for approximately six years and was marked by multiple applications, including an interim injunction.
Northern Air discontinued its judicial review application just before its final submissions were due.
Costs Ruling:
The court had to decide the issue of costs after Northern Air discontinued the case.
AHS and Can-West, as successful parties, were entitled to costs based on Schedule C, Column 5 of the Alberta Rules of Court, recognizing the complexity of the case.
Northern Air argued for standard costs (Schedule C, Column 1), but the court found that the increased complexity justified using Column 5.
Key Factors Considered:
Complexity of the case.
Protracted litigation due to delays from both sides.
Offers of settlement made by AHS and Can-West, which Northern Air rejected.
Final Costs Award:
AHS was awarded $70,268, including double costs for actions taken after an unaccepted settlement offer.
Can-West was awarded $30,240 with a similar structure.
Both awards were based on Column 5, and neither party was granted additional multipliers or full solicitor-client costs.
