Son of deceased Coquitlam man held liable for legal costs after estate’s failed countersuit

A recent B.C. A Supreme Court ruling has made the son of a deceased Coquitlam man partially liable for legal costs tied to lawsuits he pursued on behalf of the estate.

The Dec. 11 judgment will force Rudyard Fuller to pay the lawyer’s bill for Epic Restoration Services, and Travelers Canada Insurance, related to the estate’s failed counterclaim over flood-related repairs in 2017.

“Mr. Fuller is personally liable for the award of costs payable by the estate to Epic, but only to the extent that those costs arise out of the estate’s unsuccessful counterclaim,” ruled Justice Kevin Loo.

After a 12-day trial in late 2022, the court ordered the estate to pay $37,700, plus interest, to Epic Restoration, dismissing numerous counterclaims of poor workmanship, unfinished work and unauthorized disposal of items. Various claims against Travelers Canada alleging breach of duty and loss of rental income were also dismissed.

While the principal amount has since been paid off, Epic Restoration recently filed for relief to make Fuller personally liable for seven-years of outstanding interest, totalling $41,394, as the estate no longer has sufficient assets.

A judge dismissed the application due to procedural issues in June, 2024, but added he found the plaintiff’s “substantive arguments compelling,” and affirmed their right to commence separate legal actions in the future to hold Fuller personally liable.

For the current judgement, Epic Restoration argued that, as a matter of law, trustees and estate executors who bring legal actions on behalf of an estate are liable for costs if unsuccessful.

Fuller had tried to argue the case should be dismissed, citing legal principles to prevent the court from revisiting the issue of his personal liability in the future. He asserted that Epic Restoration’s relief applications had been delayed, and they knew the estate’s funds had already been distributed to inheritors.

Justice Kevin Loo, however, found no exception that would absolve Fuller from liability, noting he continued the legal actions after his father’s death, potentially for his benefit as a beneficiary of the estate.

“There is no principled reason to distinguish between the initiation of a claim and the continuation of a claim,” Loo said. “(Fuller) took a personal risk in doing so that he might be liable for costs, if the estate were unsuccessful.”

Epic Restoration initially sought costs for the entire legal dispute, but Loo clarified the liability should only be applied to the estate’s counterclaims, and not its defence against the previous civil suits.

Fuller was found fully responsible for the costs linked to the estate’s third-party claim against Travelers Insurance.

“There is nothing in the law to say that executors ought to be liable for costs if they fail in successfully defending an estate against claims,” Loo said.

The court also addressed additional potential relief measures, such as adding Fuller as a defendant for enforcement purposes and registering a charge against the property for the costs. 

However, Loo found no immediate need for such actions, as Epic Restoration had not yet started efforts to collect the costs from Fuller.

As the legal costs related to the failed claims are still being finalized, the court has ordered that the parties submit written arguments by January 2025 to determine the exact total.