"Justice Minister should 'tax' legal bill," says CTF
Author:
John Carpay
2001/05/27
EDMONTON - Alberta taxpayers may not have to be on the hook for the full $792,064 of settling the Goddard-Day law suit if Justice Minister David Hancock challenges the lawyers' bill before a Taxation Officer at the Court of Queen's Bench. A Taxation Officer can reduce the lawyers' bill, or rule that it is legitimate and must be paid. Lawyers refer to this process of challenging a bill as "taxing" an account.
In response to previous demands from the Canadian Taxpayers Federation (CTF) to "tax" the account, Minister Hancock stated that he would await a Court ruling on whether Alberta's Risk Management Fund had legal authority to pay for settlement of the action. On Friday May 18, Alberta Court of Queen's Bench Justice Hawco in Calgary ruled that it did.
Lawyers for Mr. Goddard and Mr. Day charged $732,064 to settle Goddard's $60,000 claim. The Risk Management Fund is controlled and managed by the Alberta government. Alberta taxpayers are responsible for paying the premiums and a $1 million deductible. "Private insurance companies would never spend that much on a $60,000 claim," stated CTF-Alberta director John Carpay.
"The government has nothing to lose, and Alberta taxpayers have everything to gain, by challenging the lawyers' excessive account," stated Carpay. "Making this taxpayer-friendly decision would be the first step towards introducing real accountability to the Risk Management Fund."