The court determined costs following a reference decision on priority of claims.
The applicant, Joe Guerrieri, was awarded reduced substantial indemnity costs ($40,000) in priority to all parties except the first mortgagee, Frances Gower.
Gower was awarded significantly reduced substantial indemnity costs ($20,000) with first priority.
Rob Rolston Building Materials Ltd. was awarded $5,000 in costs.
Jerry Schmanda and Dawna Catharine Fairbairn (the Schmandas), whose unsuccessful equitable mortgage claim caused the reference, were made liable for any unrecoverable costs awarded to Guerrieri, Gower, and Rolston.
The court considered Rule 57 factors, proportionality, and settlement offers, noting that while offers were made, none were accepted in a way that avoided the reference hearing costs.
