Ann Frances Rundle

Following a summary judgment granting possession of a condominium unit to the plaintiff corporation for unpaid common expenses, the parties disputed the scale and assessment of costs.

The original default was approximately $500, but the claimed arrears grew to over $46,000, largely due to legal fees and interest.

The court ordered the costs to be assessed and held that, despite the condominium declaration stipulating solicitor-client costs, the court retains discretion to award costs on a partial indemnity scale.

The court ordered partial indemnity costs due to the disproportionate nature of the legal fees, the corporation's failure to mitigate conflict, and the defendants' earlier offer to settle.

The plaintiff condominium corporation obtained summary judgment for possession and arrears of common expenses against the defendants.

The parties disputed whether the legal costs, which had escalated to over $35,000 on an original default of $500, should be assessed and on what scale.

The court ordered the costs to be referred for assessment.

Despite the condominium declaration providing for solicitor-client costs, the court exercised its discretion to order that the costs be assessed on a partial indemnity scale, citing the disproportionate nature of the fees, the high interest rate charged, and the plaintiff's failure to accept a reasonable settlement offer early in the dispute.