B.G. Blay

This endorsement addresses the costs of a summary judgment motion and the underlying action, where the plaintiff's claims were dismissed.

The successful defendant sought substantial indemnity costs, arguing unsupported allegations of intentional misconduct and an early settlement offer.

The court rejected substantial indemnity, finding the allegations did not constitute fraud or dishonesty and that an early offer does not automatically warrant elevated costs.

Assessing costs on a partial indemnity basis, the court reduced the quantum sought by the defendant, citing the assignment of two senior lawyers to a moderately complex and relatively straightforward matter.

The court fixed costs at $15,000 inclusive of HST and disbursements.

The plaintiff, Michael St. Jean Realty Inc. (SJR), a real estate brokerage, sued the defendant, Scarfone Hawkins LLP, alleging breach of trust, interference with economic relations, and detinue regarding unpaid commissions from condominium sales.

SJR claimed an agreement with the developer (467 Charlton Avenue Inc.) for commissions to be held in trust by Scarfone Hawkins LLP, which were then improperly disbursed to creditors.

Scarfone Hawkins LLP brought a motion for summary judgment seeking dismissal of SJR's claim.

The court granted the motion, dismissing SJR's action, finding no evidence of a specific trust created for SJR or that Scarfone Hawkins LLP was aware of such a trust or acted dishonestly in disbursing funds according to creditor directions.