Following a judgment in favour of the landlord regarding the termination of a commercial lease upon a request to assign, the landlord sought costs of $15,098.45 on a substantial indemnity basis or $9,928.16 on a partial indemnity basis.
The tenant argued that the case involved a novel issue with no prior Ontario case law and suggested costs be limited to $5,000.
The court found that while the landlord was successful and entitled to costs, the tenant had a good argument on a novel issue.
The court fixed costs at $5,000, noting the tenant's failure to file its own bill of costs diminished its argument on reasonable expectations.