Following a non‑jury trial concerning a vehicle lease agreement, the plaintiff’s claim for damages was dismissed because the alleged debt was extinguished by the defendant’s prior bankruptcy after the plaintiff failed to prove fraud under s. 178(1)(d) and (e) of the Bankruptcy and Insolvency Act.
The successful defendant sought substantial indemnity costs on the basis that the plaintiff advanced allegations of fraud.
The court held that substantial indemnity costs were not justified, finding the amount claimed excessive and noting aspects of the defendant’s conduct that prolonged the trial.
Exercising its discretion under Rule 57 of the Rules of Civil Procedure, the court fixed partial indemnity costs at a reduced amount.
Costs were awarded to the defendant in the sum of $25,000 inclusive of fees, HST, and disbursements.
