Following a successful foreclosure claim on a mortgage in default, the plaintiff sought costs on a substantial indemnity basis pursuant to the mortgage terms.
The plaintiff claimed $47,075 in legal fees, while the defendant argued for approximately $21,000 on a partial indemnity basis and challenged several bill of costs entries.
The court considered the complexity of the litigation, including limitation issues and the time gap between the debt, mortgage, and enforcement proceedings.
Although the court accepted that substantial indemnity costs were appropriate, it found portions of counsel’s preparation time for discovery and trial excessive.
The court fixed costs at $35,000 on a substantial indemnity basis plus disbursements and HST.