Following the dismissal of a class proceeding, the Attorney General for Canada sought costs against the plaintiffs' solicitors, arguing the plaintiffs had not given informed consent regarding costs exposure.
The motions judge ordered the solicitors to personally indemnify the defendants for costs, finding that uninformed consent equated to a lack of authority to commence the action.
The Court of Appeal allowed the solicitors' appeal, holding that a failure to advise on costs does not invalidate the authority conferred by a client to commence proceedings, and that breach of warranty of authority could not put the defendants in a better position than if the impecunious plaintiffs had provided informed consent.
