Court of Justice and the Recovery of Costs and Disbursements

As detailed in our prior article, Understanding Costs in Alberta’s Litigation Process (Part 1), litigation costs in the Court of King’s Bench are typically awarded on a partial indemnity basis, guided by Schedule C of the Alberta Rules of Court (“ARC”).

Effective January 1, 2019, the Alberta Court of Justice instituted its own Tariff of Recoverable Costs (the “Tariff“), which serves as a guideline for determining the costs that may be awarded in its proceedings.

On July 31, 2023, the Court of Justice updated its Tariff of Recoverable Costs, which is detailed in Practice Note 3 – Costs in the Alberta Court of Justice Civil Division. The Tariff remains “a guide to costs that may be awarded”.

In alignment with the Court of King’s Bench, the Alberta Court of Justice (formerly known as the Provincial Court) has four general types of costs:

• Party and Party costs;

• Lump Sum costs;

• Solicitor Client costs; and

• Enhanced costs.

Party and Party Costs

Party and Party costs are governed by the 2023 Tariff of Recoverable Costs, which assigns specific cost amounts for various stages of litigation based on the claim value.

Typically, these costs allow a litigant to recover between 20-25% of the actual legal expenses (see Legare v Acme (Village), 2023 ABKB 278).

The award of such costs is discretionary and is influenced by factors such as:

• The outcome of the case;
• The complexity of the litigation;
• The conduct of the parties during the proceedings; and
• Whether the litigation was unnecessarily prolonged.

Lump Sum Costs

Lump sum costs represent fixed amounts awarded in lieu of calculated costs under the Tariff. They provide a streamlined approach to awarding costs, without requiring extensive itemized calculations.

Such costs are typically awarded where:

• The court deems the calculation of individual costs impractical;
• There is a desire to encourage a cost-effective resolution of disputes; and
• The lump sum award is at the court’s discretion (see Varshney v 864475 Alberta Ltd., 2025 ABCJ 26).

Solicitor-Client Costs

Solicitor-client costs are awarded on a full-indemnity basis, covering all reasonable legal fees and disbursements incurred by the prevailing party. However, these costs are rarely granted and are generally reserved for cases involving egregious misconduct (see Aman Carrier Ltd. v. 1746446 Alberta Inc., 2015 ABQB 344).

Solicitor-client costs may be awarded in exceptional circumstances, such as:

• Litigation misconduct (e.g., delay tactics, false testimony, and failure to comply with court orders);
• Fraudulent conduct (e.g., falsification of documents or deceitful claims);
• Obstruction of justice (e.g., concealing evidence); or
• Malicious or vexatious litigation, where a party abuses the legal process.

Enhanced Costs: A Special Category

Enhanced costs may be awarded in certain cases where a party’s conduct:

• Causes significant delays in the proceedings;
• Involves bad faith litigation; or
• Unnecessarily increases costs for the opposing party.

Enhanced costs exceed the standard tariff rates, but do not provide the full indemnity granted by solicitor-client costs (see Cyr v Bryce-Burns, 2025 ABCJ 6).

Examples of Conduct Leading to Enhanced Costs:

• Refusing to provide disclosure or evidence;
• Making unsubstantiated claims of fraud or misconduct; or
• Filing frivolous lawsuits or counterclaims to harass the other party.

Recoverable Litigation Expenses (Disbursements)

In addition to legal costs, certain disbursements (out-of-pocket litigation expenses) are recoverable under Section 39 of the Provincial Court Civil Procedure Regulation. These expenses include:

• Mandatory Court Fees
  • Filing fees as per the Provincial Court Fees Regulation; and
  • Fees for issuing subpoenas, court transcripts, and trial-related documentation.
• Service Fees
  • Fees paid to process servers for delivering court documents to the opposing party.
• Government Registry Searches
  • Fees for conducting searches at the Land Titles Office, Corporate Registry, or Personal Property Registry.
• Expert Witness Fees
  • Preparation of expert reports;
  • Time spent in court by expert witnesses; and
  • Reasonable expenses incurred by expert witnesses for attending trial.
• Witness Attendance Allowance
  • Regular witnesses: $25 per day plus travel and accommodation costs; and
  • Expert witnesses: $50 per day plus travel and accommodation costs.
• Additional Litigation Expenses
  • Photocopying and document preparation fees;
  • Court-ordered costs for translations or transcriptions; and
  • Reasonable costs of travel and accommodation if a witness or party had to travel for the hearing.
• Judicial Discretion in Awarding Disbursements:
  • The court may reduce or disallow expert witness fees if:
    • The expert’s testimony was unnecessary or redundant;
    • The expert was not properly qualified; or
    • The expert failed to provide useful or relevant evidence.

Conclusion

The Alberta Court of Justice employs a structured approach to awarding costs, with the 2023 Tariff of Recoverable Costs providing guidance for party and party cost calculations. The court retains discretion to award enhanced or solicitor-client costs in cases of misconduct, while recoverable disbursements cover necessary litigation expenses.

If you have any questions or concerns after reading this article, or if you need guidance regarding costs and disbursements in the Alberta Court of Justice, please contact Walsh LLP and speak with a member of our litigation team. We are here to help you navigate the litigation process with clarity and confidence.

For further details or specific inquiries please contact:

Dan Fuller, Associate
Email: cerisman@walshlaw.ca
Telephone: ‭403.267.8443‬