Executive Summary: Key Legal and Evidentiary Issues

• The Attorney General applied to have Liliana Kostic declared a vexatious litigant under section 40 of the Federal Courts Act.

• Ms. Kostic had a nearly two-decade history of complex and repetitive civil litigation across multiple jurisdictions.

• Her filings included numerous actions with unsubstantiated claims, procedural non-compliance, and excessive court resource demands.

• Allegations made by Ms. Kostic against legal counsel and judges were unsupported and deemed scandalous.

• The Court considered the cumulative pattern of litigation conduct, including abuse of process and failure to follow court orders.

• The Attorney General successfully demonstrated that Kostic’s litigation conduct justified restrictions on further court access.

Facts and Outcome of the Case

Background and Litigation History
Liliana Kostic’s legal troubles began after her 2006 termination by the Piikani Nation, with whom she had been engaged to manage trust funds resulting from a federal-provincial land settlement. Following her dismissal, the Piikani Nation initiated a civil claim alleging negligence and breach of fiduciary duties. In response, Kostic launched a series of counterclaims, third-party claims, wrongful dismissal suits, and additional actions, many of which mirrored the same set of facts and parties.

Her litigation expanded over time into more than 30 separate proceedings in Alberta alone. She later brought related matters into Federal Court, including judicial reviews and civil claims. Many of her court filings were extensive, emotionally charged, and frequently failed to meet procedural requirements. Her conduct included re-litigating resolved issues, making broad and unsupported allegations of conspiracy and fraud, and failing to comply with costs awards or court orders.

Federal Court Proceedings
The Attorney General of Canada applied under section 40 of the Federal Courts Act for a declaration that Ms. Kostic was a vexatious litigant. The application was supported by evidence of extensive misuse of court processes and disregard for judicial directions. Ms. Kostic opposed the motion, arguing her litigation arose from legitimate concerns about missing trust funds and systemic abuse. She framed herself as a whistleblower and victim of a broad conspiracy involving federal and financial institutions.

She also emphasized that she was a self-represented litigant with a disability and had been engaged in the litigation to protect public interest. However, her filings were consistently found to be procedurally improper, overly voluminous, and ungovernable.

Court’s Analysis and Ruling
Justice McVeigh ruled that Ms. Kostic exhibited virtually all hallmarks of a vexatious litigant, including frivolous and repetitive filings, noncompliance with orders, scandalous allegations, and involvement in matters where she lacked standing.

The Court clarified that the merit of underlying claims was not the issue; rather, it was her conduct in court that triggered the need for judicial intervention. As a result, the Court granted the Attorney General’s request.

Court’s Final Judgment
Ms. Kostic was declared a vexatious litigant under section 40. The Court ordered that she must obtain leave before initiating or continuing any proceedings in the Federal Court. All current proceedings in her name are stayed unless such leave is granted. The Court also awarded costs to the Attorney General.