The Law Society of Ontario appealed a Divisional Court decision that remitted a costs decision back to the Law Society Tribunal Hearing Division.
The respondent, a lawyer, had successfully defended against professional misconduct charges and sought costs against the Law Society under Rule 25.01 for 'wasted costs'.
The Hearing Division denied costs, but the Divisional Court found the investigation was procedurally unfair and one-sided.
The Court of Appeal dismissed the Law Society's appeal, holding that while the Divisional Court erred in applying a procedural fairness framework, the Hearing Division erred in principle by taking a piecemeal approach to the Law Society's conduct and applying an overly rigid standard for wasted costs.
The matter was properly remitted for a holistic assessment of whether the Law Society's conduct caused wasted costs.
