Following dismissal of an application under ss. 134 and 135 of the Condominium Act, 1998 challenging the validity of proxy votes and the election of a condominium board, the successful respondent corporation sought substantial indemnity costs.
The applicant unit owner argued that each party should bear their own costs or alternatively that she should receive partial indemnity costs under rule 57.01(2).
The court held that although the corporation was successful on the merits, deficiencies in the corporation’s record‑keeping contributed to the confusion surrounding voter eligibility and gave rise to the litigation.
Given the legitimate governance concerns raised by the applicant and the broader interest of unit owners, it would be unfair to require her to pay the corporation’s costs.
However, the applicant was also not entitled to costs because she continued the application after receiving information that her complaint would not affect the election result and declined a without‑costs withdrawal offer.