Following an arbitration award of $120,521.66 in favour of the plaintiff in a construction lien action, the parties sought a determination on costs.
The plaintiff claimed substantial indemnity costs from the date of its $125,000 offer to settle.
The court held that to determine if the offer was beaten, prejudgment interest up to the date of the offer must be added to the principal award.
As this total ($121,317.89) was less than the offer, Rule 49.10(1) was not engaged.
The court awarded the plaintiff partial indemnity costs fixed at $50,000 for fees and $4,724.93 for disbursements.
