The Applicant, successful in an oppression application under the Canada Business Corporations Act, sought substantial indemnity costs after recovering a modest $14,555.34.
The court assessed the Applicant's costs outline, which included two offers to settle.
The first offer was deemed invalid for costs consequences under Rule 49.11 as it was not made to all jointly and severally liable defendants and was not unilaterally controllable.
The second offer, while made to both respondents, was structured in a way that required an ad hoc assessment of costs, making it difficult to determine if the result was better than the offer.
Emphasizing proportionality given the modest recovery and the significant costs incurred by the Applicant (including multiple lawyers), the court awarded a proportionate sum of $20,000, all inclusive, payable jointly and severally by the Respondents, significantly less than the Applicant's claim.