The defendant sought leave to appeal to the Divisional Court from a costs endorsement awarding the plaintiffs $190,000 on a partial indemnity basis following a successful interlocutory injunction motion.
The defendant argued the costs award was excessive and inconsistent with principles of fairness, reasonableness, and proportionality.
Applying Rule 62.02(4) of the Rules of Civil Procedure, the court considered whether there was good reason to doubt the correctness of the order and whether the proposed appeal raised matters of sufficient importance.
While most alleged errors were rejected, the court found that the unusually high quantum of costs for a one-day injunction motion raised serious concerns regarding reasonableness and proportionality.
Given the potential access to justice implications, leave to appeal the costs award was granted.