One of the most common questions people ask when considering estate litigation is simple:
"If I win, will the other side have to pay my legal fees?"
The answer is often more complicated than people expect.
A recent Alberta Court of King's Bench decision, Buye v. Fisher, 2026 ABKB 589, provides an important reminder that success in litigation is not always measured by whether a party wins on one or two issues. Instead, courts look at the overall result of the case when deciding costs.
Why Costs Matter
Legal costs can become a significant issue in estate disputes, particularly when litigation involves:
- Capacity challenges
- Powers of Attorney
- Allegations of undue influence
- Gift disputes
- Estate administration conflicts
- Will challenges
Many people are surprised to learn that even if they succeed on certain issues, they may still be ordered to pay a portion of the opposing party's legal costs.
The Background
The costs decision followed an earlier trial involving allegations about capacity, estate planning documents, inter vivos gifts, and undue influence. At trial, one party successfully challenged several large gifts, but many of their other claims were unsuccessful.
The Court was then asked to determine who should pay costs and in what amount.
Winning One Issue Does Not Mean You Won the Case
One of the most important lessons from the decision is that courts do not simply count how many issues each party won.
Instead, judges assess success from a broader perspective.
The Court explained that success must be evaluated both quantitatively and qualitatively. In other words, the Court looks at the practical outcome of the litigation rather than treating each issue as carrying equal weight.
This approach is particularly important in estate litigation where a lawsuit may involve numerous claims, allegations, and legal issues.
Overall Success Matters
In Buye v. Fisher, one party succeeded in having gifts totaling approximately $2 million declared invalid. However, the Court found that the opposing parties were successful on many other significant issues, including:
- Defending multiple estate planning documents;
- Defending allegations of undue influence;
- Defeating applications relating to an attorney's appointment;
- Defending accounting claims; and
- Successfully resisting other forms of relief sought in the litigation.
After examining the case, the Court concluded that the respondents achieved substantially greater overall success.
The result serves as a reminder that a party can win an important battle yet still lose the broader war for costs purposes.
Settlement Offers Can Have Major Consequences
The decision also highlights the importance of carefully evaluating settlement offers.
The Court found that one of the most significant factors in its costs analysis was the rejection of a formal settlement offer that would have produced a better financial result than the outcome ultimately achieved at trial.
This is a common feature of litigation.
Parties sometimes become focused on proving a point or pursuing every argument available. However, courts expect litigants to seriously consider reasonable settlement opportunities.
When a party rejects an offer and later achieves a worse result, the costs consequences can be substantial.
Serious Allegations Can Increase Costs Exposure
Estate disputes frequently involve allegations of:
- Undue influence;
- Financial exploitation;
- Elder abuse;
- Misuse of Power of Attorney authority; or
- Improper conduct by family members.
In this case, the Court noted that serious allegations had been made regarding the character, honesty, and integrity of other parties.
While parties are entitled to raise legitimate concerns, allegations of wrongdoing should be supported by evidence. Unsupported allegations can ultimately affect how the Court views costs.
Full-Indemnity Costs Remain Rare
The successful parties argued that they should receive full-indemnity costs, meaning reimbursement for virtually all of their legal expenses.
The Court declined to make such an award.
Instead, the Court reinforced an important principle:
Full-indemnity costs are exceptional.
Litigation being expensive, stressful, or difficult is generally not enough. Courts typically require evidence of misconduct, abuse of process, bad faith, or other exceptional circumstances before awarding costs approaching full reimbursement.
What This Means for Alberta Families
The decision provides several practical lessons for anyone considering estate litigation:
Consider the Entire Case
Winning one issue may not translate into overall success if numerous other claims fail.
Evaluate Settlement Offers Carefully
A rejected settlement proposal can later become one of the most important factors in a cost's decision.
Focus on Strong Claims
Estate litigation often involves emotional family disputes. Focusing on the strongest legal issues can help reduce unnecessary costs and risks.
Understand Costs Exposure
Even where a claim has merit, there is always a risk that a court may order costs if the overall result is less favorable than expected.
The Bottom Line
Buye v. Fisher reminds litigants that estate disputes are not scored like a checklist. Courts look at the overall outcome, the practical value of the issues won and lost, the parties' conduct throughout the litigation, and whether reasonable settlement opportunities were rejected.
For anyone involved in estate litigation, understanding potential costs consequences is just as important as understanding the legal merits of the case itself.
MerGen Law is Here to Help You
At MerGen Law, we assist clients throughout Alberta with estate disputes, capacity challenges, undue influence claims, Powers of Attorney matters, and estate litigation. Careful legal advice at an early stage can help clients assess risks, evaluate settlement opportunities, and make informed decisions about moving forward.
This article is intended for informational purposes only and does not constitute legal advice. Individuals facing concerns about wills and estates should seek professional advice tailored to their specific circumstances.