Following a successful disability insurance action, the plaintiff sought costs on a substantial indemnity basis, arguing the defendants’ conduct before and after litigation justified enhanced costs.
Alternatively, the plaintiff sought partial indemnity costs up to the date of a settlement offer and substantial indemnity thereafter under Rule 49.
The defendants argued costs before the offer should be reduced due to the plaintiff abandoning a related wrongful dismissal claim.
The court held that partial indemnity costs remained the default before the settlement offer but reduced those fees by 25% to account for the abandoned claim.
Substantial indemnity costs were awarded from the date of the offer forward, resulting in a total costs award exceeding $114,000.
