Chantal Beaupré

Following a finding of contempt and a motion to strike the defence, the successful party sought full indemnity costs exceeding $67,000.

The court considered the aggravating factors under Rule 57.01 of the Rules of Civil Procedure and the conduct of the responding party, including findings that the responding party had deliberately misled the court and bankruptcy officials.

The court held that the contempt finding justified costs on a higher scale, namely substantial indemnity.

However, the court reduced the amount claimed to account for prior cost awards and some duplication related to a previous motion to lift a stay of proceedings.

Costs were fixed at $50,000 inclusive of HST and disbursements.

Costs were determined following a successful motion removing the plaintiffs’ solicitors due to a conflict of interest arising from the hiring of a lawyer who previously acted for the defendant and the deceased in related matters.

The court found that the lawyer possessed confidential and privileged information and had disclosed it to the firm representing the plaintiffs, and that the firm failed to implement effective screening measures.

The defendant and a supporting third party sought substantial or full indemnity costs.

The court concluded that the conduct of the plaintiffs’ counsel was sufficiently egregious to warrant full indemnity costs.

Costs were awarded to both the moving defendant and the third party, with a portion ordered to be paid personally by the solicitors under Rule 57.07 of the Rules of Civil Procedure.