MCA Television Ltd. v. Canada
T-2607-87 / T-2608-87 / T-2609-87 / T-2610-87
MacKay J.
31/10/94
9 pp.
Application for instructions to taxing officer authorizing increases in Tariff B amounts for party and party costs-Plaintiffs successfully appealing assessments of income tax for 1978 to 1981-Submitting appropriate case for such directions given success; large sums involved; novel issues not previously considered in regard to statutory, treaty interpretation; 500 hours of preparation by two senior counsel, 350 hours for solicitors with expertise in taxation matters; six witness called of whom two from Canada, three from United States, one from Europe; one senior counsel, one tax solicitor required to visit California to develop understanding of industries and to interview prospective witnesses, prepare them for trial-Dispute concerned interpretation, application of Income Tax Act, Convention-Draft bill of costs seeking up to $35,000 for preparation for trial; up to $15,000 for attendance at trial-Pre-trial preparation including research concerning industries involved, meaning of terms within industry, aspects of law and Convention, interviewing and conferring with witnesses, prospective witnesses, preparation for, subsequent dealing with evidence from discovery, preparation of agreed document book, brief of authorities-Circumstances warranting recognition plaintiff's counsel's extensive work prior to trial reducing issues ultimately tried in regard to original reassessments-Reasonable disbursements incurred include long distance telephone charges, all reasonable expenses for senior counsel to travel to California-Costs of second member of plaintiff's team of counsel not recoverable-Defendant objecting to recovery of costs for two senior counsel based on complexity of case-Arguing case not warranting special directions to taxing master as to fees-Suggesting only in exceptional cases should Court allow extra costs: TRW Inc. v. Walbar of Canada Inc. (1992), 43 C.P.R. (3d) 449 (F.C.A.)-Cases allowing extra costs longer, and issues more complex-Issues herein not as complex as in Wellcome Foundation Ltd. v. Apotex Inc. (1992), 40 C.P.R. (3d) 376 F.C.T.D.), but legal issues concerning interpretation, application of Income Tax Act, Canada-U.S. Convention herein novel, trial judgment now on appeal-Though not complex case, counsel for both parties successful in narrowing issues for trial, and in efficiently dealing with witnesses, evidence, argument, all of which reflected preparatory work, resulting in shortening time required for trial-Direction to taxing officer authorizing increase in fee for services of counsel (1) in preparation for trial up to $5,000 as taxing officer considers reasonable, in recognition case warranting participation in preparations by at least one senior, one junior counsel; (2) in conduct of trial to allow $600 per half day for one senior counsel and $300 per half day for one junior counsel (or $9,000 for conduct of trial)-Increases not to compensate plaintiff for costs incurred for legal services in this matter, even though thus far successful as not function of party and party costs-Federal Court Rules, C.R.C., c. 663, R. 344 (as am. by SOR/87-221, s. 2).