Date: 20061117
Docket: T-1509-04
Citation: 2006
FC 1398
Ottawa, Ontario, November 17, 2006
PRESENT: The Honourable Mr. Justice Martineau
BETWEEN:
ALICE MAXINE JAIME GRISMER and
ALEXIS JORDANA MCIVOR-GRISMER
Applicants
and
SQUAMISH INDIAN BAND
A.K.A. SQUAMISH NATION COUNCIL
Respondent
REASONS FOR ORDER AND ORDER
[1]
This is a
motion in writing by the applicants for directions under subsection 403(3) of
the Federal Courts Rules, SOR/98-106 (the Rules) with respect to an
order rendered September 12th, 2006, wherein I dismissed the
applicants’ application for judicial review, with costs awarded to the
respondent.
[2]
In coming
to my conclusion, I found that although certain provisions of the respondent’s
Membership Code were discriminatory under section 15 of the Canadian Charter
of Rights and Freedoms, Part I of the Constitution Act, 1982, being
Schedule B to the Canada Act 1982 (U.K.),
1982, c. 11 (the Charter), they were nonetheless saved under
section 1 of same. In light of this finding, it was unnecessary to decide
whether the respondent’s right to control membership was an “aboriginal right”
within the meaning of subsection 35(1) of the Constitution Act, 1982,
being Schedule B to the Canada Act 1982 (U.K.), 1982, c. 11 (the Constitution
Act, 1982), or alternatively, an “other right” as contemplated by section
25 of the Charter, that could not be abrogated or derogated from by subsection
15(1) of the Charter (Grismer v. Squamish First Nation, 2006 FC 1088). Accordingly,
I dismissed the judicial review application “with costs payable to the
respondent”.
[3]
The
applicants now seek directions for costs pursuant to Rule 403, which reads as
follows:
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403.
(1) A party may request that directions be given to the assessment officer
respecting any matter referred to in rule 400,
(a)
by serving and filing a notice of motion within 30 days after judgment has
been pronounced; or
(b)
in a motion for judgment under subsection 394(2).
(2)
A motion may be brought under paragraph (1)(a) whether or not the judgment
included an order concerning costs.
(3)
A motion under paragraph (1)(a) shall be brought before
the
judge or prothonotary who signed the judgment.
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403.
(1) Une partie peut demander que des directives soient données à l’officier
taxateur au sujet des questions visées à la règle 400 :
a)
soit en signifiant et en déposant un avis de requête dans les 30 jours
suivant le prononcé du jugement;
b)
soit par voie de requête au moment de la présentation de la requête pour
jugement selon le paragraphe 394(2).
(2)
La requête visée à l’alinéa (1)a) peut être présentée que le jugement
comporte ou non une ordonnance sur les dépens.
(3)
La requête visée à l’alinéa (1)a) est présentée au juge ou au
protonotaire
qui a signé le jugement.
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[4]
Specifically, the applicants submit
that each party should assume its own costs, given the parties’ divided success
(CCH Canadian Ltd. v. Law Society of
Upper Canada, [2000] F.C.J. No. 92
(QL)). In support
of their position, they contend that they successfully argued that they were
discriminated against contrary to section 15 of the Charter. Although the
respondent succeeded in its section 1 argument, it failed to establish the
existence of an aboriginal right under section 35 and did not succeed with
regards to its section 25 argument. Given their divided success, each party
should bear its own costs. Furthermore, the applicants argue that the
respondent should bear the cost of Dr. Dorothy Kennedy’s affidavit and expert
report, as it was submitted in support of its section 35 argument, which was
ultimately not considered by the Court. In the alternative, the applicants ask
that a lump sum order taking into account the success of both parties be made
under Rule 401. Finally, they request that directions be given to the
assessment officer respecting costs for photocopying and Quicklaw searches.
[5]
I will
first address the issue of whether the present motion for directions was
validly brought under Rule 403. In this regard, the respondent contends that
the Court has no jurisdiction to make any of the directions sought here by the
applicants. Essentially, it is submitted that the Court is functus officio because
costs have already been granted in favour of the respondent. Relying on Canada
v. Canadian Pacific Ltd., 2002 FCA 98, the respondent argues that the
applicants are in effect asking the Court to reconsider its judgment and that such
a motion should have been filed under Rule 397 within 10 days after the making
of the order.
[6]
According
to the case law, where the Court has awarded “costs”, a motion under Rule 403
is available and constitutes a motion to vary an order of the Court with
respect to costs (Bayer AG v. Apotex Inc., 2005 FCA 128 at paragraph 7; Consorzio
del Prosciutto di Parma v. Maple Leaf Meats Inc. (C.A.) [2003] 2 F.C. 451,
2002 FCA 417; Maytag Corp. v. Whirlpool Corp., 2001 FCA 250). A Court may then make directions for
the assessment of costs, provided that it is not inconsistent with the original
order (Pelletier v. Canada (Procureur général), 2006 CF 191).
[7]
I note
that in ITV Technologies, Inc. v. WIC Television Ltd., 274 F.T.R. 94, 2005
FC 744, the Court stated, at paragraph 20:
Clearly, some suggested variations such
as completely denying a party costs when they had previously been granted go
too far - they are utterly inconsistent with the Court's initial order.
However, I can see no difference in principle, in the context of a motion for
directions pursuant to Rule 403, between limiting one party's costs to a
certain time frame versus granting a lump sum increase to one party versus
adjusting the scale of costs. Whether these purported variations are to be
considered inconsistent with the original order and thus in my opinion outside
the scope of the Court's discretion under Rule 403, is a question to be
determined in the particular circumstances of each case, and in light of the
specificity of the original order that was rendered. As Rule 400 confirms after
all, costs are primarily a matter of discretion.
[8]
Generally,
costs are awarded to the successful party (Merck & Co. v. Novopharm Ltd.
(1998), 152 F.T.R. 74 (F.C.T.D.) However, Rule 400 provides that the Court has
full discretionary
power over the amount and allocation of costs and the
determination of by whom they are to be paid.
[9]
In
exercising its discretion, the Court may consider the factors listed under subsection
400(3) of the Rules:
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400.
(3) In exercising its discretion under subsection (1), the Court may consider
(a)
the result of the proceeding;
(b)
the amounts claimed and the amounts recovered;
(c)
the importance and complexity of the issues;
(d)
the apportionment of liability;
(e)
any written offer to settle;
(f)
any offer to contribute made under rule 421;
(g)
the amount of work;
(h)
whether the public interest in having the proceeding litigated justifies a
particular award of costs;
(i)
any conduct of a party that tended to shorten or unnecessarily lengthen the
duration of the proceeding;
(j)
the failure by a party to admit anything that should have been admitted or to
serve a request to admit;
(k)
whether any step in the proceeding was
(i)
improper, vexatious or unnecessary, or
(ii)
taken through negligence, mistake or excessive caution;
(l)
whether more than one set of costs should be allowed, where two or more
parties were represented by different solicitors or were represented by the
same solicitor but separated their defence unnecessarily;
(m)
whether two or more parties, represented by the same solicitor, initiated
separate proceedings unnecessarily;
(n)
whether a party who was successful in an action exaggerated a claim,
including a counterclaim or third party claim, to avoid the operation of
rules 292 to 299; and
(o)
any other matter that it considers relevant.
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400.
(3) Dans l’exercice de son pouvoir discrétionnaire en application du
paragraphe (1), la Cour peut tenir compte de l’un ou l’autre des facteurs
suivants :
a)
le résultat de l’instance;
b)
les sommes réclamées et les sommes recouvrées;
c)
l’importance et la complexité des questions en litige;
d)
le partage de la responsabilité;
e)
toute offre écrite de règlement;
f)
toute offre de contribution faite en vertu de la règle 421;
g)
la charge de travail;
h)
le fait que l’intérêt public dans la résolution judiciaire de l’instance
justifie une adjudication particulière des dépens;
i)
la conduite d’une partie qui a eu pour effet d’abréger ou de prolonger
inutilement la durée de l’instance;
j)
le défaut de la part d’une partie de signifier une demande visée à la règle
255 ou de reconnaître ce qui aurait dû être admis;
k)
la question de savoir si une mesure prise au cours de l’instance, selon le
cas :
(i)
était inappropriée, vexatoire ou inutile,
(ii)
a été entreprise de manière négligente, par erreur ou avec trop de
circonspection;
l)
la question de savoir si plus d’un mémoire de dépens devrait être accordé
lorsque deux ou plusieurs parties sont représentées par différents avocats ou
lorsque, étant représentées par le même avocat, elles ont scindé inutilement
leur défense;
m)
la question de savoir si deux ou plusieurs parties représentées par le même
avocat ont engagé inutilement des instances distinctes;
n)
la question de savoir si la partie qui a eu gain de cause dans une action a
exagéré le montant de sa réclamation, notamment celle indiquée dans la demande
reconventionnelle ou la mise en cause, pour éviter l’application des règles
292 à 299;
o)
toute autre question qu’elle juge pertinente.
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[10]
Essentially,
the applicants submit that I should reconsider my previous order awarding costs
to the respondent. In this regard, I should give particular weight to the
factors mentioned at paragraphs 400(3)(h) and (o) in exercising my discretion
with regards to costs. Indeed, the applicants contend that there was public
interest in having the proceeding litigated in the absence of
any rulings on the application of the Charter to Band
Membership Rules promulgated under section 10 of the Indian Act, R.S.C.
1985, c. I-5. They also submit that the respondent’s proposed billing for costs
in the amount of $28,012.90 is punitive given the nature of the application.
Furthermore, both applicants are university students and Jaime Grismer is a
working single mother of three children. Therefore, the applicants argue that
each party should assume its own costs.
[11]
In my
view, if I were to direct today that each party assume its own costs, such a
direction would be inconsistent with the original order, which stated that
costs are payable to the respondent. In the particular circumstances of this
case, although I found that there was discrimination, the application for
judicial review could not succeed in view of the fact that such discrimination
could be justified under section 1 of the Charter. Accordingly, the
application for judicial review was dismissed. In this sense, there was no
divided success. In the result, the respondent won and I simply did not need
to dispose of the other arguments made by the respondent. The result of the
proceeding was certainly a key factor in the exercise of my
discretion to allow costs to the respondent.
[12]
Unless the
Court orders otherwise, party-and-party costs shall be assessed in accordance
with column III of the table to Tariff B and I see no reason to deviate from
this general rule. Moreover, I am not in a position today to award a lump sump
in lieu of any assessed costs. That being said, in assessing the costs payable
to the respondent, the assessment officer may consider the factors referred to
in subsection 400 (3) of the Rules, including any other relevant factor raised
by the applicants in their motion for directions. Furthermore, with respect to
the costs relating to photocopying and Quicklaw searches, I am of the view that
these issues are better left in the hands of the assessment officer (Campbell v. The Queen, [1984] C.T.C. 105, 84 D.T.C.
6164 (Fed. T.D.)).
[13]
Finally, the
applicants have asked that costs related to Dr. Kennedy’s affidavit and expert
report (collectively the “report”) be excluded from the proposed bill of costs
submitted by the respondent. The main objective of the report was to answer
questions submitted by respondent’s counsel relating to the Squamish membership
practices prior to contact with Europeans. Earlier in the proceedings, the
applicants unsuccessfully contested the inclusion of the report in the file. The
respondent submits that the report was a reasonable disbursement. Although I do
not find the respondent’s use of the expert report to be unreasonable, in the
exercise of my discretion and taking into account all relevant factors, I am
prepared to exclude all costs and disbursements related to the expert report. In
my view, a direction that such costs and disbursements be excluded by the
assessment officer would not be inconsistent with the original order. In coming
to this conclusion, I have considered inter alia the fact that the
respondent submitted the report “as evidence relevant to the aboriginal rights
claim” (Motion Record of the Respondent, dated November 10, 2004, at page 97).
Ultimately, I did not find it necessary to decide whether the respondent’s
right to control membership was an “aboriginal right” within the meaning of
subsection 35(1) of the Constitution Act, 1982, or alternatively, an
“other right” as contemplated by section 25 of the Charter, that cannot be
abrogated or derogated from by subsection 15(1) of the Charter.
ORDER
THIS COURT
ORDERS:
1.
The motion
for directions under subsection 403(3) of the Rules is allowed in part; and,
2.
Costs
awarded to the respondent pursuant to the order rendered September 12, 2006, shall
be assessed by the assessment officer in accordance with column III of the
table to Tariff B. In assessing such costs, the assessment officer may
consider factors referred to in subsection 400 (3) of the Rules, including any
other relevant factor raised by the applicants in their motion for directions.
Moreover all costs and disbursements related to Dr. Dorothy Kennedy’s Affidavit
and expert report shall be excluded by the assessment officer.
“Luc
Martineau”