A. L. Schein

Following dismissal of the defendants’ motion for summary judgment, the court determined the appropriate costs award.

The plaintiffs sought substantial indemnity costs on the basis that the motion was unreasonable, while the defendants argued for a reduced partial indemnity award and challenged several disbursements.

The court held that the motion was not unreasonable or brought in bad faith and declined to award substantial indemnity costs under Rule 20.06.

Costs were limited to steps taken after the plaintiffs amended their claim to include fraud-related allegations, which ultimately led to their success on the motion.

The court excluded the plaintiffs’ expert fee and certain other disbursements, and fixed partial indemnity costs at $30,000 inclusive of disbursements and taxes.

The defendants brought a motion for summary judgment on their counterclaim for the balance of the purchase price under a share purchase agreement and to dismiss the plaintiffs' action.

The plaintiffs alleged fraudulent misrepresentation regarding the financial position of the purchased company and sought rescission.

The court found that there was some evidence to support the plaintiffs' claims and that issues of credibility and fact, particularly regarding when the plaintiffs became aware of the alleged fraud and whether they affirmed the contract, required a full trial.

The motion for summary judgment was dismissed.