Following dismissal of a civil action arising from alleged flood-related damages, the court determined the appropriate costs award.
The defendants sought substantial indemnity costs relying on unaccepted Rule 49 offers to settle and their complete success at trial.
The court applied Rules 49 and 57 of the Rules of Civil Procedure, considering the offers, the complexity of the technical issues, the time spent by counsel, and the parties’ reasonable expectations regarding litigation costs relative to the amount in dispute.
The court awarded partial indemnity costs up to the date of the defendants’ first offer and substantial indemnity costs thereafter, while reducing certain disbursements, including expert and transcript expenses, as excessive.