Following a successful application compelling production of documents, the applicant sought costs including substantial indemnity costs from the date of a Rule 49 offer to settle.
The court held that the offer contained an element of compromise and that the judgment obtained was more favourable than the offer, justifying substantial indemnity costs from the date of the offer.
The court rejected arguments that senior counsel duplication and hourly rates were unreasonable, noting that outdated cost grid guidelines were unrealistic for complex commercial litigation.
Applying a methodology of awarding 60% of actual time for partial indemnity costs and 90% for substantial indemnity costs after the offer, the court found the claimed costs fair and reasonable.
Costs of $100,000 were ordered payable solely by the general partner respondent and not reimbursable by the limited partnership.
