Following a successful motion by certain defendant insurers seeking a declaration that their law firm could continue acting despite the arrival of a lawyer who had previously acted for the opposing party, the court addressed the issue of costs.
The unsuccessful party argued that the motion arose from circumstances created by the law firm’s hiring decision and that each party should bear its own costs, or alternatively that the amount sought was excessive.
The court applied the principles governing costs under s.131.1 of the Courts of Justice Act and Rule 57 of the Rules of Civil Procedure, emphasizing fairness and reasonableness rather than strict indemnification.
Although the successful defendants claimed approximately $59,800, the court found that amount excessive for a half‑day motion.
Costs were fixed at $42,000 payable within 30 days.
