IQALUIT - A two-year battle over rights to a $131.97 website domain name will cost Nunavut Tourism more than $8,000.

Former CEO of Nunavut Tourism Madeleine Redfern was recently ordered to cede three domain names to Nunavut Tourism – something she said she always planned to do. However, Nunavut Tourism will have to pay for part of Redfern's legal costs, the original site registration fee plus a lump sum for its conduct throughout the lawsuit. - NNSL file photo

On Sept. 10, Nunavut Justice Earl Johnson determined Nunavut Tourism had legal rights to its website domain name, which was registered by former CEO Madeleine Redfern.

However, in a classic case of "winning the battle, not the war," Johnson also decided Nunavut Tourism unreasonably rejected offers to settle and took an "overly aggressive" stance.

"Feelings ran high while the legal fees increased and both sides dug in their heels," he said, adding, as a result, Redfern's legal costs reached "the ridiculous level of almost $12,000."

Johnson ordered Redfern to pay Nunavut Tourism $815 in legal costs. But he awarded a far more substantial sum of $8,381.97 to Redfern for reimbursement of the website's registration fee, legal costs and "enhanced costs" for Nunavut Tourism's conduct in the lawsuit – netting Redfern a total of $7,566.97.

During arguments, Redfern's lawyer likened the case to the movie Runaway Train but Johnson said it reminded him more of the movie Cool Hand Luke.

"In one scene, the strong-willed prisoner, played by Paul Newman, is lying in a ditch covered with dust and bruises after being recaptured from a prison escape. The warden ... looks down at him and says, 'What we got here is a failure to communicate,'" he said.

This particular failure to communicate dates back to 2007. The lawsuit began over rights to wesbite domain names "NunavutTourism.com," "NunavutTourism.net" and "NunavutTourism.org."

Unbeknownst to the organization, while working as CEO Redfern registered the domain names to herself, not Nunavut Tourism. The decision was made without malice – the registration site wouldn't accept Redfern's work e-mail – and Redfern said she always had the intention of transferring the names to Nunavut Tourism.

In spring 2007, she contacted the organization through a third party, then-Liberal candidate for Nunavut MP Kirk Ejesiak, to discuss transfer of the domain and reimbursement for registration.

The nature of that conversation is disputed by both parties, but according to court documents, Nunavut Tourism was "very distressed" to learn it didn't own the domain names and tried to contact Redfern to discuss the situation.

After receiving no response from Redfern after repeated phone calls, e-mails and a registered letter, Nunavut Tourism proceeded with legal action in October 2007.

Redfern later said she didn't reply because she was "busy with work and life," which Johnson called a "hollow" and unacceptable excuse.

Regardless of her reasons for not replying earlier, Redfern responded with an offer to settle Nov. 12, 2007. She proposed to transfer the domain name in return for reimbursement of the site's registration costs.

"Instead of building on the peace offering of Regan (Redfern's lawyer), Cooper (Nunavut Tourism's lawyer) took the overly aggressive tact of challenging Regan's status as a member of the Nunavut bar," said Johnson.

"Having lost this opportunity to settle, the legal fees on both sides became a moving target," he added.

The mess could have been largely avoided if Nunavut Tourism had accepted the first offer to settle, concluded Johnson.

"While Redfern may be faulted for causing the litigation, Cooper and his client may be faulted for not ending it," he wrote.