Following the settlement of two personal injury actions arising from a motor vehicle accident, the parties could not agree on the quantum of costs and pre-judgment interest (PJI).
The plaintiffs sought over $163,000 in costs, while the defendants argued for a lower amount based on the settlement value of $375,000.
The court rejected the plaintiffs' extensive bill of costs, finding it disproportionate and offensive to the principle of indemnity given likely contingency fee arrangements.
The court fixed costs at $84,750 (inclusive of HST), representing 20% of the net recovery, and awarded $14,354.75 in PJI, representing half of the plaintiffs' claim, due to the impossibility of apportioning the all-inclusive settlement funds.
