Four employees commenced wrongful dismissal actions after being terminated without reasonable notice or payment in lieu.
The actions were settled, but the parties were unable to agree on costs, leaving the court to determine responsibility and quantum.
Applying Rule 57.01 of the Rules of Civil Procedure and the principles articulated in leading appellate authority on costs, the court assessed factors including indemnity, proportionality, hourly rates, hours spent, complexity, conduct of the parties, and reasonable expectations regarding costs liability.
The court found the employees were the successful parties and entitled to partial indemnity costs.
The defendant’s conduct did not justify elevated costs, but also did not warrant depriving the employees of their presumptive entitlement.
The court awarded each employee $8,000 in partial indemnity costs inclusive of disbursements and HST.