Following a three-day trial determining the shareholders of a corporation, the successful respondent sought costs on a substantial indemnity basis.
The applicants argued costs should be in the cause or limited due to a settlement offer and alleged excessive time claimed by counsel.
The court held that substantial indemnity costs were not justified because the applicants’ conduct was not reprehensible and the settlement offer did not comply with Rule 49.10 nor yield a result as favourable as the offer.
Applying the reasonableness factors under Rule 57(1), the court reduced the claimed hours and fixed partial indemnity costs at $30,000 inclusive of disbursements and taxes.
