An escort who lost a lawsuit against the City of Edmonton won't have to pay thousands of dollars in legal costs that she claimed forced her back into prostitution.

Court of Queen's Bench Justice R. Wacowich has ruled Carol-Lynn Strachan doesn't have to pay the city nearly $20,000 to cover the costs of taking the city to court in 2003 over its escort licensing bylaw.

A previous ruling had ordered Strachan to pay the money after she lost her legal challenge against the bylaw. She had claimed it was discriminatory because it charges higher fees for escort services than for other businesses.

But a judge threw out her challenge and ordered her to pay legal costs to the city.

She declared bankruptcy, but the city insisted it get its money back.

Late in 2005, Strachan publicly stated she had quit the sex trade, and turned to making and selling gift baskets to earn a living.

But Strachan said she was forced back into prostitution to repay the outstanding legal costs.