The appellants appealed a costs award of $60,267.39 made against them following the dismissal of their $50,000 claim under the simplified procedure.
The Divisional Court allowed the appeal, finding that the trial judge erred by failing to apply the principle of proportionality and by focusing on the expectations of the winning party rather than the reasonable expectations of the losing party.
The costs award was reduced to $40,000 inclusive of disbursements and GST.
