Is a debtor's lawyer liable to a lender if they oppose a lender's application for a judicial sale?

Alberta, Canada


The following excerpt is from Reliant Capital Limited v. 1247675 Alberta Ltd., 2009 ABQB 633 (CanLII):

The granting of a charge under Rule 625 is discretionary, and a charge should not be given if it seems unfair to give it: Royal Bank v. Laughlin, 2001 CarswellAlta 402, 2001 ABCA 78, 277 A.R. 201, 242 W.A.C. 201. In my view, it would be unfair to grant charging orders in situations such as this, as the result would be a ‘one way street’. If a debtor’s lawyer successfully opposes a lender’s application for a judicial sale, and the property later sells for less, is the debtor’s lawyer liable for the loss? I think not. So how would it be fair to award a charging order in the opposite situation, that is, when the property later sells for more? Costs might have been appropriate at an earlier stage

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