If you lose a civil lawsuit in Calgary, the “costs follow the event” rule means you will likely have to pay a portion of the winning party’s legal fees. This can range from a few hundred dollars in the Alberta Court of Justice to tens of thousands of dollars in the Court of King’s Bench.
Engaging in civil litigation is a serious financial decision, and the risks extend far beyond simply paying your own lawyer’s hourly rates. 💲 In Alberta, the legal system generally operates on a “loser pays” principle, commonly known as “costs follow the event.” This rule is designed to discourage frivolous lawsuits and encourage fair settlements before matters reach a full trial.
If a judge in Calgary rules against you, they will almost always order you to reimburse the winning party for a portion of their legal expenses. 📈 Understanding your potential exposure to adverse costs is absolutely essential when evaluating the strength of your case. Consulting a local civil litigation lawyer early on can help you weigh these financial risks before you decide to proceed with a trial.
Step-by-Step Process in Calgary, Alberta
The awarding of court costs does not happen automatically; it is a structured procedure that occurs at the very end of a lawsuit. 📍 Most of these cost assessments take place at the Calgary Courts Centre following a judge’s final verdict.
Step 1: The Judge Issues a Decision
Once the trial or major application concludes, the judge will deliver their decision on the merits of the case. After ruling on who won and who lost, the judge will ask both parties to address the issue of “costs.” 📄 The successful party will typically request that their costs be paid by the unsuccessful party.
Step 2: Submission of the Bill of Costs
In the Court of King’s Bench, the winning party’s lawyer will prepare a formal “Bill of Costs.” This document outlines all the specific litigation steps they took (such as drafting pleadings, conducting questioning, and attending trial) and assigns a dollar value to each step based on a strict provincial tariff known as Schedule C. 💼 They will also include their out-of-pocket “disbursements,” such as court filing fees and expert witness invoices.
Step 3: The Final Costs Award
The judge will review the Bill of Costs and hear arguments from both sides. If the winning party acted unreasonably during the litigation, the judge might reduce the costs. Once approved, the costs award becomes a legally binding judgment debt against you, which the winning party can enforce just like any other monetary judgment.
How Much Does it Cost in Calgary?
The amount you will pay depends entirely on the complexity of the case and which court you are in. 💰 Here is a general breakdown of what losing a lawsuit might cost you in CAD as of May 2026:
- Alberta Court of Justice (Under $100,000): The costs in small claims court are heavily capped. You might be ordered to pay $200 to $1,500 CAD, mostly to cover the winner’s out-of-pocket expenses and a small allowance for their time.
- Court of King’s Bench (Schedule C Costs): In the higher court, costs are calculated using the Schedule C tariff. For a standard multi-day trial, an adverse costs award typically ranges from $10,000 to $40,000 CAD.
- Disbursements: You must also pay the winner’s “disbursements” 100%. If they hired a specialized appraiser or medical expert who charged $5,000 CAD, you will be on the hook for that entire amount.
| Alberta Court of Justice | Capped allowances and out-of-pocket expenses | $200 – $1,500 CAD |
| Court of King’s Bench | Schedule C Tariff + 100% of Disbursements | $10,000 – $40,000+ CAD |
How Long Does the Process Take?
Once a final judgment is entered and a costs order is made, you generally do not have much time to pay. ⏱ The court typically expects adverse costs to be paid within 30 days of the final order. If you fail to pay within the allotted timeframe, the winning party can immediately begin enforcement actions, such as garnishing your wages or placing a writ on your property in Alberta.
Frequently Asked Questions (FAQ)
Does a costs award cover 100% of the winner’s lawyer fees?
No, standard Schedule C costs in Alberta are designed to be a “partial indemnity.” This means they generally only cover about 40% to 50% of the actual legal fees the winning party paid to their law firm.
Can a judge order me to pay more than Schedule C costs?
Yes, if the judge finds that you engaged in serious misconduct, hid evidence, or aggressively prolonged the litigation, they can award “solicitor-client costs.” This rare penalty forces the loser to pay nearly 100% of the winner’s legal bills.
What if I am self-represented and lose?
Even if you do not have a lawyer, the “loser pays” rule still applies to you. If the winning party hired a lawyer, you will still be ordered to pay their costs according to the standard court tariff.
What if I reject a settlement offer and then lose?
If the opposing party made a formal settlement offer before trial, and you rejected it but ended up getting a worse result at trial, the court may hit you with double costs as a penalty for wasting the court’s time.
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