An executor that files a lawsuit on behalf of an estate can be personally liable for the costs of an unsuccessful legal action, a British Columbia court has confirmed, denying an executor’s application for leave to appeal a costs order against her.
In a 2025 decision, the Supreme Court of B.C. ordered costs against a woman, Laurie Hurting Rasner, after she unsuccessfully sued her stepbrother in a purported estate dispute.
According to the court’s decision, in her capacity as the executor of her stepmother’s estate, Rasner brought a legal action against her stepbrother over a condo that the deceased purchased back in 2000, and her son (the executor’s stepbrother) continued to live in.
The court rejected her claim, ruling that their mother intended for the son to have the use of the condo throughout his life, and that he was entitled to his costs in the action. It also ruled that Rasner should be personally liable for those costs — finding that, while she brought the case in her capacity as executor, that didn’t shield her from liability for costs.
Among other things, the court noted that as the only other beneficiary of the estate, Rasner was the only person who stood to benefit from the action brought on behalf of the estate.
“It is well established that where the real contest is not between the estate and a beneficiary, but essentially between beneficiaries, this court may award costs against an executor or executrix personally, even where the action was nominally brought in the name of the estate,” the Supreme Court noted in its decision.
Rasner sought leave to appeal that ruling, arguing that the lower court judge made several errors in the decision finding that she is personally liable — and that the judge shouldn’t be able to order costs against someone that isn’t party to a legal action, absent special circumstances.
Now, the Court of Appeal for B.C. has rejected her application.
Among other things, it noted that her argument is based on a misunderstanding of the nature of an estate.
“Trusts and estates are not juridical persons capable of suing and being sued,” the court said in its decision on April 10. “A trust is a type of relationship, namely, the fiduciary relationship that exists between trustee and beneficiary.”
And, when an executor launches a legal action on behalf of an estate, they’re not acting as a distinct legal person, the court said.
“The often-used analogy is that they are the same person, wearing a different hat,” it noted.
Whether an executor is held personally liable for costs in a lawsuit brought on behalf of an estate is up to the discretion of the courts, the appeal court stressed.
“An award of costs is a highly discretionary order and is entitled to great deference,” it noted.
And, in this case, the court said “it was clearly open to the judge to find that Ms. Rasner was the person who primarily stood to benefit from the litigation, and to exercise her discretion to award costs against Ms. Rasner personally.”
As a result, it dismissed the application for leave to appeal.