Following a successful trial establishing repayment obligations under promissory notes, the plaintiffs sought costs on a full indemnity basis based on a contractual costs clause and an unaccepted Rule 49 offer to settle.
The defendant argued that the claim for costs was excessive and unsupported by documentation and that the action was straightforward.
The court reviewed the principles governing costs under s. 131 of the Courts of Justice Act and Rule 57.01 of the Rules of Civil Procedure.
Considering the plaintiffs’ success, the favourable Rule 49 offer, and the defendant’s litigation conduct, the court concluded that substantial indemnity costs were justified.
However, applying proportionality and reasonableness, the court reduced the amount claimed and fixed costs at a lower figure.
