ARCHIVED -  Taxation Order CRTC 96-4

Taxation Order

Ottawa, 27 March 1996

Taxation Order CRTC 96-4

In re: Implementation of Regulatory Framework - Splitting of the Rate Base and Related Issues, Telecom Decision CRTC 95-21 and Telecom Costs Order CRTC 95-9

James Wachowich for the Alberta Consumers' Coalition (AltaCC).

Denis Henry for Stentor Resource Centre Inc. (Stentor).

TAXATION OF COSTS OF ALTACC

Taxing Officer: Lori Assheton-Smith

This order consitutes the taxation of costs awarded to AltaCC in the proceeding leading to Implementation of Regulatory Framework - Splitting of the Rate Base and Related Issues, Telecom Decision CRTC 95-21, 31 October 1995 (Decision 95-21). Costs were awarded to AltaCC by Telecom Costs Order CRTC 95-9, 1 November 1995 (Costs Order 95-9), in accordance with subsection 44(1) of the CRTC Telecommunications Rules of Procedure. Costs Order 95-9 provided that AltaCC is entitled to 50% of its costs in the proceeding leading to Decision 95-21, and further provided that these costs are to be paid by each respondent in proportion to its revenues from telecommunications activities, as reported in each company's most recent audited financial statements.

On 30 November 1995, AltaCC submitted a Bill of Costs in the amount of $83,149.52, consisting of $79,602.65 in fees and $3,546.87 in disbursements. On 6 December 1995, AltaCC filed a revised Bill of Costs to correct errors in the original Bill of Costs relating to the rates and hours of the consultants. In its revised Bill of Costs, AltaCC claimed $69,942.65 in fees and $3,546.87 in disbursements. These amounts are inclusive of 7% GST.

On 13 December 1995, Stentor filed written comments on AltaCC's Bill of Costs, indicating that it had no objection to the claim. The remaining respondents did not file comments.

Fees and Time Allocations

AltaCC claimed 109 hours at an hourly rate of $175 for its counsel, Mr. James Wachowich. For its consultant, Mr. Jeffrey Jodoin, AltaCC claimed 294 hours at an hourly rate of $120, and for its consultant, Mr. A. Merani, it claimed 69 hours at an hourly rate of $160.

I note that the rates claimed by AltaCC for its counsel and consultants reflect those set out by the Commission's Legal Directorate in its Guidelines for the Taxation of Costs, and I will allow the rates as claimed.

In determining whether the time claimed by AltaCC can be said to be reasonable and necessary, consistent with previous taxation orders, I am of the view that it is appropriate to consider the time claimed by AltaCC on a global basis. In this regard, I note that AltaCC has claimed a total of 472 hours for its counsel and consultants. In my view, this is excessive given the extent of AltaCC's participation in the proceeding that led to Decision 95-21. AltaCC prepared interrogatories and filed written argument in the proceeding, but it did not file any evidence, nor did it attend the oral hearing. Another intervener in the same proceeding, the Consumer Policy Institute (CPI), neither filed evidence nor attended the oral hearing, and claimed a total of 54.6 hours for its participation in the proceeding. I note that AltaCC, unlike CPI, drafted and submitted interrogatories in this proceeding. I further note that AltaCC submitted written argument that was considerably more detailed and which touched on a much broader range of issues than that of CPI. Nevertheless, in light of the nature and extent of AltaCC's participation in this proceeding, and particularly in light of the fact that AltaCC neither submitted evidence nor participated in the oral hearing, I consider AltaCC's claim of 472 hours to be far in excess of what was reasonable or necessary in the circumstances. In my view, a total time allowance of 350 hours is more appropriate.

In apportioning the time allowed amongst AltaCC's counsel and consultants, I note that the bulk of AltaCC's hours were claimed by its consultant, Mr. Jodoin. In my view, Mr. Jodoin's claim of 294 hours cannot be viewed as reasonable and necessary given AltaCC's level of participation in this proceeding. In particular, I find Mr. Jodoin's claim of 155 hours for reviewing the file to be excessive in the circumstances. Again, by way of comparison, another intervener in this proceeding, the Consumers' Association of Canada, claimed a total of 126 hours for its consultant, whereas the B.C. Old Age Pensioners' Organization et al. claimed a total of 168.4 hours for its consultant. The extent of participation of both of these interveners in this proceeding was considerably greater than that of AltaCC. At the same time, I note that Mr. Jodoin is a fairly junior consultant, who can be expected to require more time to familiarize himself with the issues, and who in turn claims a lower hourly rate.

In light of all of these considerations, I will allow 190 hours for Mr. Jodoin. With respect to Mr. Wachowich and Mr. Merani, I consider that the fairest and most appropriate manner in which to appropriate the remaining time is to prorate the time claimed for each of these individuals. Accordingly, I will allow 97.6 hours for Mr. Wachowich and 62.4 hours for Mr. Merani.

Disbursements

AltaCC claimed disbursements of $3,546.87. I consider this amount to be reasonable and I will allow the disbursements as claimed.

Costs as Taxed

I hereby tax the fees and disbursements, inclusive of GST, as follows:

Counsel Fees

Mr. James Wachowich $18,275.60

Consultant Fees

Mr. J. Jodoin $24,396.00

Mr. A. Merani $10,682.88

Total Fees $53,355.08

Consultants' Disbursements

Photocopies $52.32

Fax charges $974.77

Other Disbursements

Photocopies $204.48

Fax charges $2,000.90

Long distance telephone
and fax $301.29

Postage $13.11

Total Disbursements $3,546.87

Sub-total $56,901.35

Less 50% $28,450.68

Total Fees and
Disbursements Owing $28,450.68

As noted above, this amount is to be paid by the respondents to Costs Order 95-9 in the proportions set out in that order.

Lori Assheton-Smith
Legal Counsel
Canadian Radio-television and
Telecommunications Commission

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