1 total
Court confirms legal research is recoverable litigation cost and fixes reduced partial indemnity costs.
Following the dismissal of motions brought by a corporate director in receivership proceedings, the court determined the appropriate quantum of costs payable to the secured creditor and the court‑appointed receiver.
The director argued the creditor’s bill of costs reflected over‑lawyering and that legal research should not be compensable.
The court rejected that submission, emphasizing that legal research is an ordinary and necessary component of litigation and is properly recoverable.
Applying Rule 57.01 of the Rules of Civil Procedure and reasonable expectations of the losing party, the court fixed costs at $6,000 plus HST for the receiver and $27,500 inclusive for the creditor.
The court also refused to order that the costs be paid by a company in receivership rather than personally by the director.
