Following a successful summary judgment motion, the plaintiff sought costs on a substantial indemnity basis.
The defendant had advanced allegations of tax fraud and illegality against the plaintiff in the pleadings, which the court found were serious and unsupported.
The court reviewed the factors under Rule 57.01 of the Rules of Civil Procedure and s. 131 of the Courts of Justice Act, including indemnity principles, the parties’ expectations, complexity of the proceedings, and the importance of the issues.
The court held that unfounded allegations of dishonesty and illegality can justify costs on a higher scale.
Substantial indemnity costs were therefore awarded.
