As of August 1, 2023, major changes regarding action limits and costs in the Alberta Court of Justice (formerly Alberta Provincial Court) will take effect. Most notably, the limit for small claims has increased from $50,000 to $100,000. Not only will this shift better facilitate access to justice for all Albertans, but litigation strategies will also be impacted.
Under the previous regime, civil legal disputes over $50,000 were required to go through the Court of King’s Bench. The Court of King’s Bench is bound by the Alberta Rules of Court, resulting in a more formal and regimented legal procedure. On the other hand, the Alberta Court of Justice has discretion regarding the application of the Alberta Rules of Court, which can make the process of starting or defending a claim more user-friendly with less cost, especially for self-represented litigants.
Costs recovery has also been updated in the Alberta Court of Justice. A new schedule for costs has been adopted, which may have the effect of more predictable costs awarded. Additionally, claims still pursued in the Court of King’s Bench under $100,000 may now be awarded decreased costs, as claims with a value which falls under the jurisdiction of that court will be assessed at no more than 75% of the lowest cost award column dictated by the Rules of Court. However, it’s likely that costs awarded in the Alberta Court of Justice will remain both lower and more unpredictable than those awarded in the Court of King’s Bench.
It's also important to remember that the Alberta Court of Justice often requires parties to attend pre-trial conferences or mediation prior to permitting a trial to take place. This is a measure to mitigate the volume of claims received by the Alberta Court of Justice. An inevitable implication of doubling the small claims limit is an incentivization for litigants to pursue more claims through the Alberta Court of Justice.
Actions initiated in the Alberta Court of Justice may still be transferred to the Court of Kings Bench – but only if the action is beyond the jurisdiction of the Alberta Court of Justice. Conversely, an action initiated in the Court of King’s Bench may be transferred to the Alberta Court of Justice if the action is within the latter court’s jurisdiction, and all parties consent.
Impact on Condo Claims
However, relevant for property managers is that claims that fall under section 67 of the Condominium Property Act, which concerns improper conduct by an interested party, and foreclosures remain unable to be heard in the Alberta Court of Justice, meaning they must be heard in the Court of King’s Bench. These claims are unaffected by the updates to costs and action limits.
Only time will tell what the impacts these changes will have on the ease of accessibility and quantum of costs awarded in the Alberta Court of Justice. This is a significant in the small claims limit, and an adjustment period is anticipated.
If you have any questions regarding the changes to costs or action limits in the Alberta Court of Justice, please contact Dionne Levesque, John McDougall, Kate Kozowyk, Stuart Gray, or Kendra Barlow.