Canada Judgment

Supreme Court of British Columbia

Skalbania v. 0055498 B.C. Ltd.

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The court awarded costs to the successful party (Skalbania) because Rule 14-1(9) mandates costs follow the event and it was not unjust to award costs where Skalbania had discontinued his own claim and only defended the Counterclaim; reliance on ex turpi causa and alleged greater culpability by Archer Ltd. did not justify a departure from the usual rule.

Court disposition

Costs awarded to the Plaintiff (Nelson Skalbania).

Orders

  • Plaintiff Nelson Skalbania is awarded his costs at Scale B.

02

Material facts

Parties

Nelson Skalbania aka Nelson M. Skalbania

Plaintiff and Defendant by Way of Counterclaim Counsel: G. Douvelos

0055498 B.C. Ltd. formerly known as Archer Investments Ltd.

Defendant and Plaintiff by Way of Counterclaim Counsel: B.M. Gordon

Amounts and remedies

  • Trial Days: 4

03

Procedural history

  1. Posture

    Civil (counterclaim) / Post Trial Costs Determination (reasons for Costs)

04

Questions and positions

Legal issues

Party arguments

Applicant
Applicant (Nelson Skalbania) argued he was the successful party, had discontinued his claim earlier and was only before the court to defend the Counterclaim, and therefore is entitled to costs at Scale B under the Rules.
Respondent
Respondent (0055498 B.C. Ltd./Archer Ltd.) argued the Counterclaim was dismissed on the basis of ex turpi causa, that Skalbania was the more culpable party, and that it would be unjust to dismiss the Counterclaim but award him costs; therefore the court should 'otherwise order' and deny costs.

05

Court’s reasoning

  1. 01

    Supreme Court Civil Rules r.14-1(9)

    Costs generally follow the event

  2. 02

    Doctrine of ex turpi causa (common law)

    Court may refuse assistance where claim barred by illegality (ex turpi causa)

06

Ratio, limits and disposition

Ratio decidendi

The court awarded costs to the successful party (Skalbania) because Rule 14-1(9) mandates costs follow the event and it was not unjust to award costs where Skalbania had discontinued his own claim and only defended the Counterclaim; reliance on ex turpi causa and alleged greater culpability by Archer Ltd. did not justify a departure from the usual rule.

Obiter and limits

  • If Archer Ltd. had not pursued its Counterclaim there would not have been the four day trial.
  • Long before trial, on April 2, 2019, Skalbania discontinued his claim and did not seek affirmative relief from the court.

Court disposition

Costs awarded to the Plaintiff (Nelson Skalbania).

  • Plaintiff Nelson Skalbania is awarded his costs at Scale B.

Source and reliance status

Supreme Court of British Columbia · 10 July 2025

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Judgment reading view

Judgment text

The complete available source text.

Source document

Supreme Court of British Columbia

Judgment· 10 July 2025

2025 BCSC 1291

2025 BCSC 1291 Skalbania v. 0055498 B.C. Ltd.

IN THE SUPREME COURT OF BRITISH COLUMBIA Citation: Skalbania v. 0055498 B.C. Ltd., 2025 BCSC 1291 Date: 20250710 Docket: S168169 Registry: Vancouver Between: Nelson Skalbania aka Nelson M. Skalbania Plaintiff and Defendant by way of Counterclaim And: 0055498 B.C. Ltd. formerly known as Archer Investments Ltd. Defendant and Plaintiff by way of Counterclaim Before: The Honourable Mr. Justice Funt Reasons for Ruling on Costs Counsel for the Plaintiff and Defendant by way of Counterclaim: G. Douvelos Counsel for the Defendant and Plaintiff by way of Counterclaim: B.M. Gordon Place and Date of Hearing: Vancouver, B.C. July 7, 2025 Place and Date of Judgment: Vancouver, B.C. July 10. 2025 1. introduction [1] This ruling addresses costs related to my April 9, 2025 judgment indexed as Skalbania v. 0055498 B.C. Ltd. (Archer Investments Ltd.), 2025 BCSC 668. [2] At trial, Mr. Skalbania was the successful party. He seeks costs at Scale B. [3] As may be seen from the style of cause, 0055498 B.C. Ltd. ("Archer Ltd.") was the defendant and plaintiff by way of counterclaim (the "Counterclaim"). [4] On April 2, 2019, Mr. Skalbania discontinued his claim against Archer Ltd. [5] At trial, only the Counterclaim was engaged. [6] I dismissed the Counterclaim.

2. Supreme Court Civil Rules - Costs [7] Rule 14-1(9) of the Supreme Court Civil Rules provides: Costs to follow event (9) Subject to subrule (12), costs of a proceeding must be awarded to the successful party unless the court otherwise orders. [8] Mr. Skalbania was the successful party. Accordingly, the issue becomes whether I should "otherwise order".

3. Should i "otherwise order"? [9] Archer Ltd. submits that the Court should "otherwise order" and, accordingly, not award costs to Mr. Skalbania although he was entirely successful in having the Counterclaim dismissed. [10] Mr. Gordon, counsel for Archer Ltd., submitted the following (as I summarize): a) The Counterclaim was dismissed based upon the application of the doctrine of ex turpi causa; b) Mr. Skalbania was the "more culpable" party; c) If the Court will not assist Archer Ltd., then the Court should not assist Mr. Skalbania; and d) It would be unjust to dismiss the Counterclaim but award Mr. Skalbania costs. [11] Mr. Douvelos, counsel for Mr. Skalbania, submitted the following (as I summarize): a) Mr. Skalbania had previously discontinued his claim; b) Mr. Skalbania had to defend against the Counterclaim in an action to which the doctrine of ex turpi causa applies; and c) Mr. Skalbania was only before the Court to defend against the Counterclaim. [12] I will not "otherwise order". [13] Mr. Skalbania was the successful party and it is not "unjust" to award Mr. Skalbania his costs. [14] Mr. Skalbania was not seeking the assistance of the Court other than to dismiss the Counterclaim. [15] If Archer Ltd. had not pursued its Counterclaim, there would not have been the four day trial. [16] Long before trial, on April 2, 2019, Mr. Skalbania had "thrown in the towel" with respect to his claim by discontinuing his claim. He did not wish to proceed to court to advance a claim or obtain other relief. [17] In sum, I find that it is not unjust to award Mr. Skalbania costs, as the successful party, where he had no reason to be before the Court other than to defend against the Counterclaim.

4. Conclusion [18] Mr. Skalbania is awarded his costs at Scale B. "Funt J."

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Skalbania v. 0055498 B.C. Ltd. (Archer Investments Ltd.), 2025 BCSC 668

Case cited

Skalbania v. 0055498 B.C. Ltd., 2025 BCSC 1291

Case cited

Supreme Court Civil Rules r.14-1(9)

Legislation

Legislation referenced in the available case record.

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