Following a successful application for damages arising from the wrongful termination of a commercial lease, the court determined the appropriate costs award.
The successful tenant sought substantial indemnity costs exceeding $28,000 after obtaining damages and return of a security deposit totaling $49,735 following adjustment by the Court of Appeal.
The court reviewed the factors under Rule 57.01 of the Rules of Civil Procedure, including proportionality, reasonable expectations of the parties, and the effect of a prior offer to settle.
Although the tenant’s offer did not meet the strict requirements of Rule 49.10, the court considered it under Rule 49.13 and found the landlord should have reasonably accepted it.
Costs were awarded partly on a substantial indemnity scale for the hearing and partially on a partial indemnity basis for the remaining work.