Ajanthana Amandarajah

The plaintiff, having been successful at trial and awarded over $11 million for civil fraud, sought partial indemnity costs of approximately $1.88 million inclusive of taxes and disbursements.

The self-represented defendant argued the costs were unreasonable and should be apportioned among settling defendants.

The court considered the complexity of the action, the defendant's conduct in increasing costs, and the limited probative value of the receivership proceedings at trial.

The court fixed costs payable by the defendant at $1.05 million plus taxes for fees and $162,000 for disbursements.

During the COVID-19 pandemic, the plaintiff hospital network contracted with the corporate defendant to purchase 3 million NIOSH certified N95 masks, paying over $13 million upfront.

The corporate defendant, directed by the individual defendant Caridi, delivered KN95 masks instead, which were not NIOSH certified.

The plaintiff sued for fraudulent misrepresentation, breach of contract, oppression, and unjust enrichment.

The court found that Caridi acted recklessly in representing that the corporation could deliver NIOSH certified N95 masks without knowing if it was true.

While the court declined to pierce the corporate veil or grant an oppression remedy, it held Caridi personally liable in tort for deceit because his conduct exhibited a separate personal interest (a 50/50 profit split).

The corporate defendant was also found liable for breach of contract.