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Court awards partial indemnity costs and rejects substantial indemnity absent misconduct.
Following a summary judgment decision in favour of the plaintiffs for unpaid real estate commission after the defendants sold their home shortly after cancelling a listing agreement, the court addressed the issue of costs.
The plaintiffs sought substantial indemnity costs of approximately $19,570.70, arguing they were entirely successful on the principal claim.
The defendants argued the plaintiffs were only partially successful because punitive damages were not awarded and raised an unsupported argument regarding commission entitlement.
The court rejected substantial indemnity costs, finding no bad faith or sanctionable conduct by the defendants and emphasizing proportionality.
Partial indemnity costs of $12,500 inclusive of taxes and disbursements were awarded to the plaintiffs.
Broker awarded commission on summary judgment under listing agreement holdover clause.
A real estate brokerage and agent sought summary judgment for unpaid commission arising from a listing agreement containing a 60‑day holdover clause.
The homeowners cancelled the listing and shortly thereafter re‑listed with another agent at a substantially lower commission, later selling the property to purchasers who had previously made an offer during the original listing period.
The court assessed credibility on the summary judgment record and found the homeowners’ explanations for cancelling and re‑listing inconsistent and lacking credibility.
The court concluded there was no genuine issue requiring a trial and granted judgment for the commission amount plus interest.
The request for punitive damages based on alleged civil conspiracy with the purchasers was rejected for lack of evidence of an independent actionable wrong.