Following a summary judgment motion, the parties were unable to agree on costs.
The defendants had sought dismissal of extensive extra‑contractual claims including allegations of bad faith, negligent claims handling, and mental distress damages totaling several million dollars, which the plaintiff abandoned on the eve of the motion.
Although the plaintiff successfully resisted dismissal of her contractual claim for non‑earner benefits, the court found the defendants were substantially successful because the principal damages claims were withdrawn or dismissed.
Applying the principles under s. 131(1) of the Courts of Justice Act and Rule 57.01, the court determined that costs should generally follow the event but must remain fair and reasonable in the circumstances.
The court fixed partial indemnity costs payable to the defendants in a reduced amount to reflect the plaintiff’s limited success on the motion.