Following a trial judgment awarding the plaintiff the return of a $22,000 deposit and dismissing the defendant’s counterclaim, the court addressed costs.
The defendant argued that because the plaintiff’s recovery fell within the monetary jurisdiction of the Small Claims Court, the plaintiff should be denied costs under rule 57.05(1) of the Rules of Civil Procedure.
The court held that denial of costs under rule 57.05(1) is discretionary and not automatic, particularly where the litigation involved complexity and a multi‑day trial.
Considering the defendant’s role in causing the dispute and the complexity of the proceedings, the court exercised its discretion to award costs to the plaintiff.
Applying proportionality and the factors under rule 57.01, the court fixed partial indemnity costs at $27,500.