This endorsement addresses the costs arising from a successful summary judgment motion where the third parties (McMillan LLP, Philip Thompson, and Marssa Giahi) were granted judgment in a solicitors' negligence action brought by the defendants (Crosslink Bridge Corp. and Andrew Penuvchev).
The third parties sought substantial indemnity costs, citing complete success and a Rule 49 offer to settle.
The defendants opposed, raising access to justice concerns and disputing the reasonableness and proportionality of the hours claimed.
The court, applying Rule 57.01 factors and the principle of proportionality, found the time spent by counsel for the third parties to be disproportionate to the result.
Consequently, the court reduced McMillan LLP's requested costs from $209,897.73 to $140,000 and Philip Thompson and Marssa Giahi's requested costs from $256,604.64 to $110,000, inclusive of fees, disbursements, and HST, deeming these adjusted amounts reasonable in the circumstances.