Dispute Resolution In Western Canada For Public Infrastructure Projects: The Costs Of Litigation Relative To Arbitration

Public utilities, municipalities and other government or quasi-governmental entities are confronted with unique challenges when assessing risks related to dispute resolution. This includes considering how the cost of legal fees and disbursements will financially impact taxpayers or require the use of public funds.

In Western Canada, arbitration can be a compelling avenue for dispute resolution due to the increased likelihood of recovering full indemnity costs. Arbitral practice and case law out of Western Canada has shown that successful parties may be able to recover all reasonable legal fees and disbursements, resulting in significant savings of taxpayer funds. This stands in stark contrast to typical costs recovery in litigation, where successful parties may only expect to recover 40–50% of incurred legal fees.