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T-2086-80
Maligne Building Ltd., Totem Tog Shops Jasper Limited, and Quarks & Fribbles Limited, claim ing on behalf of themselves and on behalf of all other holders of Leases on Lands located in the Townsite of Jasper National Park which, respec tively, contain terms similar to those contained in Leases held by these Plaintiffs (Plaintiffs)
v.
The Queen and Minister of the Environment of Canada (Defendants)
Trial Division, Dubé J.—Ottawa, January 27, 1983.
Practice — Costs — Action dismissed with costs — Counsel for defendants not speaking to costs — Judge declining to hear motion under R. 337(5) because costs not overlooked in judg ment — Defendants requesting special direction to increase Tariff amounts — Under R. 337(5), Court may reconsider pronouncement only where specified slip — R. 337(5) not means for counsel to raise matter not addressed at trial Finality in judgments — Taxation of costs not judge's func tion — R. 344(7) application must be made at pronouncement of judgment or within 10 days — R. 344(7) cannot be used to alter judgment by substituting lump sum for costs to be taxed — Alteration obtainable only under R. 337(5) or (6), in circumstances specified — Increased costs not called for — Party and party costs not intended as full compensation — Amount of preparation not ground for increase, even with difficulty or importance of case — Tariff not generous but increase not achievable by motion — Motion dismissed Federal Court Rules, C.R.C., c. 663, RR. 337(5),(6), 344(7), 346, Tariff B.
In January 1982, His Lordship dismissed the plaintiffs' action with costs to the defendants, from the bench. The lawyer for the defendants did not speak to costs at that time. The defendants were unable subsequently to settle the quantum of costs with the plaintiffs, and so brought a motion under Rule 337(5) in June 1982. His Lordship declined to hear the motion, stating that costs had not been overlooked in the trial judgment; that, accordingly, no reconsideration of the pronouncement was called for; and that the defendants' lawyer should tax his costs in the regular way. About one month later, the defendants requested a special direction under Rule 344(7)(b), increasing the amounts allowed them by Tariff B.
Held, the motion for a special direction is dismissed. The defendants earlier motion was rejected because, under Rule 337(5), the Court may reconsider the terms of its pronounce-
ment only if one of the slips referred to in the provision has occurred. Rule 337(5) is not simply a means whereby counsel may later raise a matter which he failed to bring up in the course of the trial. There must be finality in judgments. More over, it is not the function of the judge to tax costs. As for the application under Rule 344(7), it must be made at the time of pronouncement or within 10 days thereafter. On the present motion, the defendants are seeking, in effect, an alteration of the trial judgment, so as to substitute the lump sum appearing on his bill of costs for the costs taxed under Tariff B in the regular manner. The decisions in Crabbe, Smerchanski and Consolboard establish that Rule 344(7) cannot be used for this purpose, and that such an alteration may be obtained only by an application under Rule 337(5) or (6), and only if one of the circumstances there specified obtains. In the instant case, the proper course for the defendants' lawyer is to tax his costs in the usual way. This is not, in any event, a case in which increased costs are called for. Party and party costs are not intended to provide a successful litigant with full compensation. The amount of preparation involved in a trial is not a sufficient ground for ordering that costs be awarded in sums greater than those stipulated in the Tariff, even if the amount of preparation is considered in conjunction with factors such as the difficulty or importance of the case. The Tariff figures are not generous and might be increased; however, that result is not to be achieved by means of a motion.
CASES JUDICIALLY CONSIDERED
FOLLOWED:
Smerchanski v. Minister of National Revenue, [ 1979] 1 F.C. 801 (C.A.); MacMillan Bloedel (Saskatchewan) Ltd. v. Consolboard Inc. (1981), 124 D.L.R. (3d) 342 (F.C.A.).
APPLIED:
Carruthers v. The Queen, [1983] 2 F.C. 350 (T.D.); Guerin, et al. v. The Queen, [1982] 2 F.C. 445; 127 D.L.R. (3d) 170 (T.D.).
REFERRED TO:
Crabbe v. Minister of Transport, [1973] F.C. 1091 (C.A.).
COUNSEL:
J. E. Redmond, Q.C. for plaintiffs.
P. G. C. Ketchum, Q.C. for defendants.
SOLICITORS:
Milner & Steer, Edmonton, for plaintiffs.
Deputy Attorney General of Canada for defendants.
The following are the reasons for order ren dered in English by
Dust J.: On January 19 and 20, 1982, I heard the two-day trial of this action at Edmonton, Alberta, and dismissed the plaintiffs' action with costs from the bench. Counsel for the defendants, Mr. P. Ketchum, Q.C., did not at the time rise to speak to costs. On January 28, 1982, I released my written reasons and the formal judgment.
On June 16, 1982, Mr. Ketchum wrote to the Registrar of the Court informing him that he had not been able to settle the matter of the quantum of costs and that it would be necessary to have this settled by direction of the Court. He therefore asked that his motion dated March 2, 1982, pursu ant to Rule 337(5), be heard by the Court. Rule 337(5) reads as follows:
Rule 337. .. .
(5) Within 10 days of the pronouncement of judgment under paragraph (2)(a), or such further time as the Court may allow, either before or after the expiration of that time, either party may move the Court, as constituted at the time of the pro nouncement, to reconsider the terms of the pronouncement, on one or both of the following grounds, and no others:
(a) that the pronouncement does not accord with the reasons, if any, that may have been given therefor;
(b) that some matter that should have been dealt with has been overlooked or accidentally omitted.
The matter was placed before me on June 30, 1982, and by memorandum of that same date I
answered as follows:
I do not propose to hear this motion. This is not a case for reconsidering the pronouncement of judgment. Costs have not been overlooked in the judgment, they have been awarded to the defendants. It is for defendants' solicitors to proceed with the taxation of costs according to the Rules.
On July 27, 1982, Mr. Ketchum wrote again to the Court requesting "a special sitting under Rule 344(7)(b) in order to get a direction from the court as to whether the amounts allowed under the Tariff should be increased, and as to whether a special witness fee ought to be allowed". The letter also requested that I preside at the special sitting. The Rule invoked reads as follows:
Rule 344. .. .
(7) Any party may
(b) after the Court has reached a conclusion as to the judgment to be pronounced, at the time of the return of the motion for judgment,
whether or not the judgment includes any order concerning costs, move the Court to make any special direction concerning costs contemplated by this Rule, including any direction con templated by Tariff B, and to decide any question as to the application of any of the provisions in Rule 346. An application under this paragraph in the Court of Appeal shall be made before the Chief Justice or a judge nominated by him but either party may apply to a Court composed of at least three judges to review a decision so obtained.
In answer to the request, the Associate Chief Justice indicated to Mr. Ketchum that his applica tion could be made returnable before this Court in Edmonton on September 20, 1982. He personally heard the motion at that time and place and ordered as follows:
Order to go allowing Defendants an extension of time for filing and service of Notice of Motion for an Order for increased amounts in respect to taxed costs herein. Motion to be returnable at Edmonton before Dubé J. at a time to be fixed by the Court.
On October 29, 1982, the Associate Chief Jus tice presided over a telephone conference call with counsel for both parties and ordered as follows:
IT IS HEREBY ORDERED that the parties make their submis sions to the Trial Judge in writing with respect to the following issues:
I. Is it appropriate in this case that the Defendants' application for increased costs (including recovery of accounts paid to experts) be dealt with by the Trial Judge before taxation?
2. Should the Defendants be allowed any increased costs, and if so, in what amount?
In response to the order both parties filed their respective submissions in December 1982. My rea sons for order and order are as follows.
The plain meaning of Rule 337(5) (the so-called "Slip Rule"), as I read it, is that the Court may reconsider the terms of its pronouncement if the pronouncement does not accord with the reasons given by the judge, or that some matter has been overlooked by the judge. In other words, if the Court has slipped in some technical matter it may take the necessary steps to correct the situation.
The Slip Rule is not a vehicle to assist counsel in bringing something up after trial which he failed to do in the course of trial. It is axiomatic that there must be finality in judgments. I am rein forced in that position by an observation made very recently by my colleague Walsh J. in Car- ruthers v. The Queen' wherein he said at page 354:
Rule 337(5) is precise, however, as to the grounds on which the pronouncement may be varied, including that some matter which should have been dealt with has been overlooked or accidentally omitted. It is difficult to conclude that a special direction respecting costs of an expert witness is something which was overlooked or accidentally omitted, as there is no requirement that the Court should decide whether such an order should be made when rendering judgment.
Thus my first reaction to the notice of motion of Mr. Ketchum as outlined in my memorandum aforementioned. In my pronouncement Mr. Ketch- um was given judgment with costs, as he requested in his defence and in the course of the trial. It is not the function of the judge to tax costs. Costs are taxed under Rule 346 by the proper taxing officer. Where a party is not satisfied with the determina tion of the taxing officer, he may appeal.
In his written submission, Mr. Ketchum submits that the appropriate procedure is as laid out by Jackett C.J. in Smerchanski v. Minister of Na tional Revenue, 2 wherein he said at pages 804 and 805:
In any event, in my view, special court directions changing the tariff amounts, such as are contemplated by section 3 of Tariff B and certain of the Rules, should be obtained before the taxation procedure is proceeded with so that such directions will be available to support the amounts claimed in the bill of costs at the time of the taxation.
I might add that, as seems clear to me from a reading of Rule 344(7) with Rule 337(5), it is contemplated that any such application for a direction increasing costs should be made while the matter is sufficiently fresh in the mind of the Court that the Court is in a position to appreciate whether there were present in the particular case circumstances justifying a depar ture from the normal tariff amounts ....
In the Smerchanski case, the respondent Minis ter of National Revenue had moved for an order that costs be paid to him in the amount of $8,626.
' [1983] 2 F.C. 350 (T.D.). 2 [1979] 1 F.C. 801 (C.A.).
Jackett C.J. said that he was bound by Crabbe v. Minister of Transport' to dismiss the application. He said as follows [at page 803]:
That judgment establishes, in my view, that, where this Court gives judgment for costs to be taxed, it cannot subsequently substitute a. lump sum unless by way of reconsideration of the judgment for a reason that falls within one of the classes of case to be found in Rule 337(5) or (6). This is not such a case. [Rule 337(6) deals with clerical mistakes.]
In other words, a party may apply under Rule 344(7) to move the Court for special directions as to costs, but must do so at the pronouncement or within 10 days after, while it is still fresh in the mind of the Court.
In the Appendix to the Smerchanski decision, Chief Justice Jackett rephrased a misleading para graph from the Crabbe decision and revised it as follows [at page 807]:
In the present case, since the judgment was pronounced in open court, the matter of awarding a fixed amount in lieu of costs to be taxed might have been spoken to before judgment was pronounced or it might have been raised on an application under Rule 337(5) or (6), that is to say, on the ground (1) (Rule 337(5)) that the terms of the judgment did not accord with the reasoning of the Court or that there had been an accidental omission, or (2) (Rule 337(6)) that there had been a clerical or accidental slip which required correction.
What Mr. Ketchum is seeking by his application is to have this Court alter its judgment dismissing the action with costs, so that in lieu of the costs being taxed in the normal way under Tariff B, it would substitute the sum laid out in his bill of costs which is annexed to his application. Such a request was denied in MacMillan Bloedel (Sas- katchewan) Ltd. v. Consolboard Inc., 4 where Ryan J. of the Federal Court of Appeal relied on the Smerchanski and Crabbe decisions and said at page 347:
This being so, this Court, in my view, has no authority on an application under para. (7) of the Rule to substitute the award of a fixed or lump sum for the costs awarded by the Supreme Court judgment.
Again, the solution to Mr. Ketchum's problem is very simply to bring his bill of costs before the proper taxing officer, the usual way. If he is not happy with the determination of the officer, he may appeal.
3 [1973] F.C. 1091 (C.A.).
4 (1981), 124 D.L.R. (3d) 342 (F.C.A.).
That answer to the first question really disposes of the second question, as to whether the defend ants ought to be allowed increased costs. However, so as to prevent further loss of time and energy, I am prepared to state now that I, in the exercise of my discretion, would not allow any increased costs with respect to this two-day trial. It comes out very clearly from the above Smerchanski decision that party and party costs are not designed to constitute full compensation to a successful party, and that the volume of work in preparation, considered alone or in conjunction with such factors as the difficulty or the importance of the case, does not constitute an adequate basis for the exercise of judicial discretion to increase tariff costs items. I would certainly agree, as perhaps most judges and lawyers would, that Federal Court Tariff fees are less than generous to the successful party and might be enriched in this period of high inflation. That purpose will not be achieved by way of a motion to the Court. In this connection a quote from my colleague Collier J. in a recent case, Guerin, et al. v. The Queen,' [at page 454 of the Federal Court Reports] seems most appropriate:
Both the Smerchanski and Consolboard cases, at trial and appeal, were lengthy, complicated and difficult. So was this case. But those factors are not sufficient, in my mind, to warrant a special direction as to costs. Undoubtedly the tariffs in the Federal Court, which was set in 1971, are, because of the tremendous increase in inflation and cost of living in the last 10 years, very low. The remedy is, in my view, to increase the tariffs, not to make arbitrary increases in individual cases to try and compensate for past economic and inflationary increases.
Therefore, my answers to both questions: firstly, it is not appropriate in this case that the defend ants' application for increased costs be dealt with by the Trial Judge before taxation; secondly, it is not appropriate in this case that the defendants be allowed any increased costs. The motion of the defendants is therefore dismissed with costs, which costs shall be taxed by a taxing officer if necessary.
ORDER
The motion of the defendants is dismissed with costs.
5 [1982] 2 F.C. 445; 127 D.L.R. (3d) 170 (T.D.).
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