Following a 14-day trial on an application to pass accounts where the applicant trustees were ordered to repay $150,531.14 to the trust, the respondent sought $567,157.64 in substantial indemnity costs.
The court found the respondent was the successful party and entitled to costs.
However, the court declined to award enhanced costs, finding that while the applicants failed to keep proper records and created documents to reconstruct the accounts, their conduct was not reprehensible or scandalous.
The court also found the respondent's costs claim was disproportionate and unreasonable due to over-lawyering and unreasonable litigation conduct.
The court awarded the respondent $90,000 in costs inclusive of disbursements and taxes.