Following a motion decision dismissing a request to amend a statement of defence to add a cross‑claim against Ontario and Canada as statute‑barred, the court addressed Ontario’s claim for costs.
The unsuccessful party argued that Ontario acted opportunistically by waiting until after the limitation period expired to raise the limitation defence and submitted that each party should bear its own costs or that Ontario’s rates should be reduced.
The court rejected the allegation of opportunism and confirmed that costs for the Crown are assessed based on fairness and reasonableness rather than actual internal billing rates.
After considering the hours claimed, the applicable partial indemnity rate guidance, and comparative information regarding Canada’s costs settlement on the same motion, the court exercised its discretion to reduce the requested amount.
Costs were awarded to Ontario in the amount of $6,000 inclusive.
