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  • How to deal with costs award

    The short question:


    I have a costs award against me in the amount of $5,000 for a motion to change. How is this normally paid?
    1. Directly to the other party?
    2. To the Lawyer?
    3. Does it have to be paid entirely upfront in a lump sum?
    4. Can it be paid in installments?
    I've tried to deal with the issue with my lawyer but he isn't returning my calls.


    Opposing council wants the money immediately and is threatening further legal costs to do so.






    Some background... I did get legal representation but it was seriously lacking. Many of the issues I brought up in my motion were never addressed, which would have resulted in a mixed success. This in turn would likely not have resulted in a costs award but who knows.


    I won't get into the case itself as it isn't really material to this question. However one relevant point is that it was for retroactive child support because the party stopped working. I've paid the arrears as a lump-sum. instead of doing a voluntary arrears payment schedule over 3 years. Paying this costs as a lump sum will be financially difficult for me.


    Thanks in advance

  • #2
    Originally posted by Gilligan View Post
    The short question:


    I have a costs award against me in the amount of $5,000 for a motion to change. How is this normally paid?
    1. Directly to the other party?
    2. To the Lawyer?
    3. Does it have to be paid entirely upfront in a lump sum?
    4. Can it be paid in installments?
    I've tried to deal with the issue with my lawyer but he isn't returning my calls.


    Opposing council wants the money immediately and is threatening further legal costs to do so.






    Some background... I did get legal representation but it was seriously lacking. Many of the issues I brought up in my motion were never addressed, which would have resulted in a mixed success. This in turn would likely not have resulted in a costs award but who knows.


    I won't get into the case itself as it isn't really material to this question. However one relevant point is that it was for retroactive child support because the party stopped working. I've paid the arrears as a lump-sum. instead of doing a voluntary arrears payment schedule over 3 years. Paying this costs as a lump sum will be financially difficult for me.


    Thanks in advance
    Try to negotiate with the other lawyer asking if they accept monthly installments, let's say $1000/month. If not, then there is no other choice than to pay in full.

    Sent from my SM-G930W8 using Tapatalk

    Comment


    • #3
      Is there a time limit on when costs must be paid if nothing is mentioned?

      Also is there a statue of limitations on bringing a cost claim? Final Orders just says if we don't agree within 30 days, then I could bring it. I was just looking to move on after trial and never did. Now that ex is delaying again, I wish I went after costs not for the award but to teach the lesson.

      Comment


      • #4
        My ex went after costs and they are awarded, ontop of a large retro claim. I'm not strapped in having to come up with a large sum.

        Comment


        • #5
          Is there a time limit on when costs must be paid if nothing is mentioned?
          Generally, a payment is owed forthwith if a date isn't otherwise set.

          Comment


          • #6
            Originally posted by OrleansLawyer View Post
            Generally, a payment is owed forthwith if a date isn't otherwise set.
            Most would want to get rid of their debt immediately, whether it's $500 or $5,000+, but what if their financial statement shows they don't have it. The whole blood from a stone thing; so is the other side then forced to accept a payment plan?

            Also, are you aware of any time limit for making a cost claim? I've read about 2, 6, 11 year limitations but I can't tell if it's related to costs. Although sooner the better, is there a limit?

            Comment


            • #7
              Thanks OrleansLawyer, very helpful. I am somewhat in that position. I didn't get great advice and my ex refused payment of child support litigating instead. I am facing a costs award, but the irony is that I don't have the money because I paid the retroactivity in a lump sum last month on top of a CS increased that doubled because the other parent stopped working (have 50/50). My lump sum payment was much higher than the costs award. Here I thought I was being the better person for paying the child support right away instead of a voluntary payment plan suggested by FRO of 3 years. Now my ex is pushing the issue and attempt to bring the matter again... With costs of course.

              In hindsight, I would have been better paying the costs and letting ex wait for CS, which would have been much longer. So much for trying to be nice.

              Comment


              • #8
                Are the costs ordered to be enforced through FRO as child support ? If so, you work out payment plan with FRO.

                Otherwise just send Canada Post money transfer of 4 to $500 a month to the other party and ignore the overly aggressive lawyer who's just trying to collect an immediate lump sum to cover his or her outstanding bill. You could write a nice letter that you have had to pay a lump child support payment in a financially difficult situation and best you can do is pay $4 to $500 a month.
                Last edited by tunnelight; 12-07-2018, 01:42 AM.

                Comment


                • #9
                  You could appeal

                  Or, if you haven't missed your appeal window, you can appeal the decision that you've lost with costs, drag it out for months or years, claim costs payable to you, and also claim that your ex pay a security - in an amount greater than costs owed by you - for the disputed funds and costs. The security payment would cancel out your owed costs and give you time to pay. If you ultimately don't take the appeal to a hearing you will not be assessed costs for that.

                  Remember: you can't lose a court action that never ends.

                  Comment


                  • #10
                    what if their financial statement shows they don't have it. The whole blood from a stone thing; so is the other side then forced to accept a payment plan?
                    If the matter is still before the court, then the other side has remedies available to them. That ranges from serious (striking pleadings) to not (using it to paint them in a bad light). Generally, it isn't a good picture to be asking a judge for an order when you are in breach of a different order.

                    If the case is not in court then it is a debt like any other (unless FRO enforceable). The person can garnish accounts or seize assets. The debt is subject to bankruptcy.

                    are you aware of any time limit for making a cost claim?
                    Before the change in the family law rules you had to seek costs for each step in a proceeding. If costs weren't awarded or reserved then there were no costs. With the change, costs are left to the trial judge.

                    If you go to trial, generally the judge will set timelines for cost submissions failing which no one gets costs.

                    Here is an example of what happens if those deadlines are not followed:
                    https://www.canlii.org/en/on/onsc/do...7onsc5888.html

                    Or, if you haven't missed your appeal window, you can appeal the decision that you've lost with costs, drag it out for months or years, claim costs payable to you, and also claim that your ex pay a security - in an amount greater than costs owed by you - for the disputed funds and costs. The security payment would cancel out your owed costs and give you time to pay. If you ultimately don't take the appeal to a hearing you will not be assessed costs for that.
                    That sounds like a great way to be painted a vexatious litigant and have much higher cost awards ordered against you.

                    Comment


                    • #11
                      Originally posted by OrleansLawyer View Post
                      If you go to trial, generally the judge will set timelines for cost submissions failing which no one gets costs.
                      In my case, the trial judge was not specific on any time limits to start, just after 30 days, and then sets time limits thereafter. Therefore, is there any rules preventing me from starting my cost submissions 3 years later?

                      If the parties cannot agree on the issue of costs within 30 days hereof, the applicant shall serve and file written costs submissions in the (city) Superior Court of Justice filing office. Within 30 days thereafter, the respondent shall serve and file written submissions in the same prescribed structure. Any reply cost submissions of the applicant may be served and filed 15 days thereafter. Costs submissions are not to exceed 5 pages.

                      Comment


                      • #12
                        I have modified the paragraph to clarify the meaning:

                        If the parties cannot agree on the issue of costs:
                        THEN
                        within 30 days hereof, the applicant shall serve and file written costs submissions in the (city) Superior Court of Justice filing office.
                        THEN
                        Within 30 days thereafter, the respondent shall serve and file written submissions in the same prescribed structure.
                        THEN
                        Any reply cost submissions of the applicant may be served and filed 15 days thereafter.
                        Costs submissions are not to exceed 5 pages.

                        In my case, the trial judge was not specific on any time limits to start
                        The Judge gave you 30 days to settle the issue, failing which that was the deadline for the Applicant to file costs submissions. I do not read it as an invitation to dally for years.

                        Comment


                        • #13
                          I agree, best to lick my wounds, pour myself a stiff drink and move on. I did my best to do that by paying a large sum of retro and left myself very little for a costs award.

                          The other party is just trying to drive up costs, threatening legal actions when I am paying the at a reasonable rate doesn't seem to make sense.

                          Comment


                          • #14
                            You pay or FRO or MEP will take steps to garnish it from you (your employer, your bank). You can also have your drivers' license suspended and passport cancelled.... and your fishing and hunting license cancelled. Your tax/gst refunds will be garnished as well. This all happens very quickly unless you register with FRO and make a voluntary arrangement for repayment. Some people find them quite easy to deal with. You have to complete and submit a sworn financial statement.

                            Comment


                            • #15
                              You pay or FRO or MEP will take steps to garnish it from you
                              Not all cost awards are enforceable as support.

                              Comment

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