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Federal Court awards $800,000 lump sum costs to successful plaintiffs in patent infringement action.
Following a finding of patent infringement against the defendant AgraCity, the plaintiffs sought costs.
The parties could not agree on the quantum.
The Federal Court awarded the plaintiffs a lump sum of $800,000 in costs, representing 30% of their actual reasonable legal fees plus reasonable disbursements.
Foreign corporate plaintiff ordered to post staged security for costs.
The defendants brought a motion under Rule 56.01(1)(a) of the Rules of Civil Procedure seeking security for costs against a foreign corporate plaintiff with no assets in Ontario or Canada.
The plaintiff argued it had substantial assets in the United States and that any Ontario costs order could be enforced in California, a reciprocating jurisdiction.
The court held that the defendants met their initial burden because the plaintiff was ordinarily resident outside Ontario.
The plaintiff failed to provide sufficient financial evidence demonstrating its ability to satisfy a potential costs award.
The court therefore exercised its discretion to order staged security for costs while reducing the amount sought by the defendants.
