Issue: Costs ruling after dismissal of Axiom’s injunction application.

Background

• The parties were bound by an Asset Purchase Agreement (APA) and Gas Handling Agreement (GHA).
• Tidewater terminated the GHA in 2024, ceasing gas processing. Axiom sought a mandatory injunction, arguing bad faith. The court dismissed the application.
• Tidewater sought full solicitor-client costs ($347,000) or a percentage award per McAllister v Calgary (City), 2021 ABCA 25.

Ruling on Costs

1. Reasonable and Proper Costs:
   • Court found 635.9 billed hours excessive, particularly in affidavit preparation, brief drafting, and cross-examinations.
   • Reduced costs to 50% ($153,300 + disbursements and GST).
2. Calderbank Offer:
   • Tidewater offered $25,000 on July 11, 2024, for Axiom to withdraw its application.
   • Court found it was not a genuine compromise given the multi-million-dollar stakes and denied double costs.
3. Costs of the Costs Application:
   • As neither party fully succeeded, each bears its own costs.