Award Of No Costs A Cautionary Tale For Defendants Of Class Actions

In the recent decision of Elder Advocates of Alberta Society v Alberta Health Services, 2021 ABCA 67, the Alberta Court of Appeal put to bed a class action that spent over 15 years in various levels of court, in confirming that the Plaintiffs did not have to pay any costs to the Province of Alberta and Alberta Health Services (collectively, the "Defendants"), even though the Defendants were entirely successful in their defense.

Background

In 2003 the daily charge for a semi-private room in a nursing home or auxiliary hospital in Alberta increased. Subsequently, the Elder Advocates of Alberta Society together with an individual (the "Plaintiffs") filed a proposed class action against the Defendants on behalf of long-term care facility residents. The Plaintiffs' law firm agreed to indemnify the Plaintiffs for any award of costs against them.