M. Protich

Following dismissal of an application seeking declaratory relief regarding control and management of church congregation property and governance, the court determined costs.

The unsuccessful applicants argued no costs should be awarded due to alleged public importance, novelty, and the charitable nature of the dispute within a religious organization.

The court rejected these arguments and held that ordinary costs principles apply, emphasizing success as the primary factor under Rule 57.01 of the Rules of Civil Procedure.

Although the respondents had made a Rule 49 offer to settle, the court declined to award substantial indemnity costs because the declaratory nature of the relief made comparison with the offer impracticable.

Costs were therefore awarded to the respondents on a partial indemnity basis.

Members of a local congregation of the Serbian Orthodox Church sought declarations that elected trustees retained authority over congregational property and that diocesan authorities acted unlawfully by removing the elected executive board and appointing a temporary trusteeship.

The applicants argued that the actions violated the Religious Organizations’ Lands Act and improperly interfered with property held in trust.

The court held that the church’s hierarchical governance structure permitted the diocese to appoint a temporary trusteeship under its internal statute.

The court found no breach of provincial legislation and concluded that the dispute primarily concerned internal church governance and canon law.

Judicial intervention was therefore unwarranted and the application was dismissed.