Following a successful motion dismissing a statement of claim as an abuse of process, the defendants sought substantial indemnity costs exceeding $177,000.
The plaintiffs argued that costs should be limited to $20,000 on a partial indemnity basis and contended that certain work related to alternate arguments on the motion should not be compensated.
The court held that substantial indemnity costs were appropriate due to unfounded allegations of serious misconduct against the defendants and the finding that the proceeding constituted an abuse of process.
While accepting the accuracy of the defendants’ bill of costs and the complexity and importance of the litigation, the court found the amount claimed excessive.
Costs were therefore fixed at a fair and reasonable level significantly below the amount requested.