Awarding Court Costs in BC Family Law

In British Columbia family law, court costs, encompassing the whole of financial obligations during legal proceedings, are awarded based on several factors. These include the conduct of the parties, who is successful, and the complexity of the case itself. Cost types include party & party costs, aimed at deterring unreasonable conduct, and solicitor-client costs, awarded for severe misconduct to cover legal fees. While self-represented litigants can claim disbursements, their time is usually non-compensable. Instances of critical misconduct or non-compliance might result in penalties or additional costs. For a more nuanced explanation of court costs in family law, further exploration of this multifaceted topic is advisable.

Key Takeaways

• In BC Family Law, court costs can be awarded based on the conduct and success of the parties involved in the case.
• Costs may also be influenced by the complexity of the case and any unreasonable behaviour displayed during proceedings.
• Self-represented litigants can claim proper disbursements but their time is not compensable.
• The financial hardship of a claimant is not considered a sufficient reason to deviate from the principle of cost allocation.
• If the final judgment aligns with the respondent’s settlement offers, it reflects on the claimant’s conduct and refusal to accept the offers, impacting cost awards against them.

Understanding Court Costs

Traversing the intricate terrain of court costs in BC Family Law requires a keen understanding of how these costs are determined and awarded. The courts in British Columbia have two main classifications of costs: party & party costs and solicitor-client costs. Party & party costs are more common and are usually awarded to the successful party in a litigation. These costs are a crucial indemnity and generally don’t cover all legal fees, but aim to discourage unreasonable litigation.

Solicitor-client costs, on the other hand, are awarded in cases involving egregious conduct such as significant wrongdoing or deception of the court. These costs generally provide full repayment of all legal fees. It’s important to note that costs are discretionary, and a court may decide not to award costs in certain circumstances. For instance, if there isn’t a clear winner or loser in a family law case, the court may choose not to upset support or property division balances by awarding costs. Hence, cost awards are one of the crucial tools in the court’s arsenal, used to discipline parties and discourage unreasonable actions.

Costs vs. Expenses and Penalties

To understand this area, we have to not only grasp what court costs are, but also differentiate them from other financial obligations, such as expenses and penalties. Understanding this distinction is paramount in BC family law proceedings.

Court costs are generally the financial obligations awarded by the court to the successful party, encompassing the reasonable and proper expenses incurred during the legal proceedings. This could include legal representative fees, document preparation charges, and more. However, these costs do not cover all legal expenses incurred and serve as a partial indemnity for the successful party.

Expenses, on the other hand, can be ordered if one party disobeys court orders or misuses court processes, such as paying for false mediation bills or last-minute daycare costs. These are distinct from court costs as they are not associated with the litigation process but are related to the litigation’s collateral damage.

Lastly, penalties or fines can be imposed for not complying with court orders. Unlike court costs and expenses, penalties serve as a punitive measure to deter non-compliance with court orders. Understanding these differences can help litigants manage their financial expectations in legal proceedings.

Types of Costs in Family Law

In the domain of family law, it is important to understand the different types of costs that may be incurred during legal proceedings. The two main types of costs in family law are party & party costs and solicitor-client costs.

Party & party costs are the most common. These are partial indemnity costs that one party has to pay to the other if they lose the case. However, these costs do not cover all the legal fees, but are designed to act as a partial reimbursement for the successful party. The aim here is to deter unreasonable conduct and maintain the dignity of the court proceedings.

The second type is solicitor-client costs. These costs are awarded in cases of severe misconduct such as deception or major wrongdoing in court. Solicitor-client costs generally provide full repayment of legal fees. This kind of award is infrequent and is reserved for the most egregious situations.

It’s important to note that these costs are discretionary and are awarded by the presiding judge or master. Unreasonable behaviour may lead to higher potential court costs. Understanding these costs can help parties better navigate the potentially complex financial landscape of family law proceedings.

Circumstances Affecting Cost Awards

Various factors influence the court’s decision to award costs in family law proceedings. The court exercises discretion based on the conduct of the parties involved, the success of the parties, and the complexity of the case.

The behaviour of parties throughout the proceedings is an important determinant. Unreasonable conduct, including refusal to settle or accept a reasonable settlement offer, can negatively impact a party’s cost claim. Conversely, those who facilitate resolution may be rewarded through cost awards.

The degree of success of the parties is another critical element. The court typically awards costs to the substantially successful party. However, in cases with multiple issues, where success is divided, the court may refrain from awarding costs.

The complexity of the case also impacts cost awards. More complex cases demand greater legal expertise and more court resources, potentially leading to higher cost awards. In contrast, simpler cases may attract lower costs.

Self-Representation and Cost Claims

A growing number of individuals choose to represent themselves in family law proceedings, raising pertinent questions about their eligibility to claim costs. While self-representation may initially seem advantageous from a financial perspective, it presents complexities when it comes to cost claims.

Self-represented litigants, despite not incurring legal fees, are entitled to claim proper disbursements. Disbursements refer to the expenses incurred in preparing a case, such as photocopying, court document filing fees, and expert reports. They do not, however, cover the cost of the litigant’s time or effort.

The courts recognize that self-represented individuals invest considerable time into their cases. However, this does not translate into a financial claim. Unlike a lawyer’s time, a self-represented litigant’s time is not considered a compensable disbursement.

Nevertheless, it’s important to note that success at an interim hearing or trial can still warrant cost claims. While self-represented litigants may not be able to claim costs in the same way as those with legal representation, they are not excluded from the possibility of cost recovery altogether. It is always recommended to seek legal advice when considering self-representation.

Special Costs in Family Law Cases

While self-represented litigants can claim basic disbursements, the concept of special costs in family law cases offers a different perspective on cost recovery. These costs are not typically awarded; they are designed to reimburse legal costs paid by the successful party fully. This total indemnification contrasts with the partial compensation often seen in general cost awards.

In BC, special costs are levied in exceptional circumstances, usually as a deterrent or punishment for reprehensible conduct. This could include severe wrongdoing, deception of the court, or flagrant disregard for court orders. The purpose is not only to compensate the aggrieved party but also to punish the aggrieving party and discourage similar behaviour in the future.

Special costs, however, should not be expected as a regular occurrence. They are reserved for extreme cases where the court feels a strong message must be sent. Parties should not rely on receiving special costs as a matter of course. It is always advisable to seek legal counsel when maneuvering the complex terrain of family law costs to understand the potential implications better.

Supreme Court Grants Double Costs Against Claimant in Child Relocation Dispute

In a notable case of a child relocation dispute, the Supreme Court awarded double costs against the claimant, underlining the financial repercussions of unreasonable conduct in family law proceedings. The claimant, who sought to relocate with their children from Mission to Kamloops, rejected reasonable settlement offers, misrepresented facts, and made unfounded applications, which led to a waste of judicial resources and an extended 12-day trial.

The court denied the proposed relocation, with the children’s primary residence remaining in Mission with the respondent. The double costs were awarded based on the claimant’s unreasonable refusal to accept settlement offers, dishonesty, and the unnecessary extension of proceedings. The final judgment aligned with the earlier settlement offers presented by the respondent, further evidencing the claimant’s unreasonable conduct.

Despite the financial hardship of the claimant, the court deemed it insufficient to deviate from awarding costs to the successful party. The claimant was also ordered to cover all fees related to the expert’s involvement in the case, including the preparation of expert reports and trial attendance, due to their reliance on these reports and refusal to contribute to their cost.

The BC Court of Appeal stated in an earlier case, regarding a rejected settlement offer, that awarding double costs is “a punitive measure against a litigant for that party’s failure, in all of the circumstances, to have accepted an offer that should have been accepted.”²

Frequently Asked Questions

What Happens if a Party Cannot Afford to Pay the Awarded Court Costs in a Family Law Case?

If a party in a family law case cannot afford to pay awarded court costs, potential remedies may include payment plans and enforcement measures, or, in extreme cases, bankruptcy might be considered as a last resort.

Are There Any Exceptions or Waivers Available for Individuals Who Are Unable to Cover Court Costs?

Yes, there are exceptions. In certain circumstances, individuals may apply for a waiver of court fees if they can demonstrate that paying these costs would cause undue hardship. A determination will be subject to the court’s discretion.

How Are Court Costs Impacted if a Party Changes Their Legal Representation Partway Through the Case?

Changing legal representation midway can potentially increase court costs due to the incoming lawyer’s need to familiarize with the case, causing additional billable hours, which could affect the overall costs if awarded to the winning party.

Does the Duration of the Trial Have Any Impact on the Amount of Court Costs Awarded?

Yes, the duration of a trial can impact court costs. Longer trials typically involve more legal work, increasing costs. However, the final decision on cost awards is at the court’s discretion.

Can a Party Appeal the Decision of Awarded Court Costs in a Family Law Case?

Yes, a party can appeal the decision of awarded court costs in a family law case. The appeal would be heard by a higher court, which has the jurisdiction to revise or overturn the decision.

Conclusion

In essence, court costs in British Columbia Family Law encompass legal fees and disbursements, with the awarding of these costs dependent on various factors such as the case outcome and conduct of parties. Understanding these cost structures is essential for litigants, with special costs awarded in instances of significant misconduct.

Self-representation also carries implications for cost claims. Through a thorough understanding, parties can effectively navigate the complexities of court costs within the BC Family Law system.

References

1. JLL v AJM, 2024 BCSC 156 (CanLII)
   https://canlii.ca/t/k2lnk ↩︎
2. Hartshorne v Hartshorne, 2011 BCCA 29 (CanLII)
   https://canlii.ca/t/2fh7z ↩︎

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