Costs Or No Costs? Reasonable Or Correct?

While federally regulated employers may not have been waiting with bated breath for the long-coming outcome of Canada (Canadian Human Rights Commission) and Mowat v Canada (AG)¹ ("Mowat"), it will permit them to breathe a little easier. In Mowat, the Supreme Court of Canada ruled that the Canadian Human Rights Tribunal does not have the ability to award costs to a successful complainant under the Canadian Human Rights Act. More importantly, it also held that the Tribunal's decision was subject to review on a standard of reasonableness, but that its decision was unreasonable.

SCC on costs

Mowat was a member of the Canadian Forces who filed a varied complaint about her treatment as a female. Ultimately she was awarded $4,000 for sexual harassment to compensate for "suffering in respect of feelings or self respect." The Tribunal proceeded to consider her claim for legal costs. It awarded her $47,000 for costs, a decision that was upheld by the Federal Court but