Following the dismissal of an appeal from a Registrar’s decision granting the bankrupt a conditional discharge, the court determined the issue of costs.
The bankrupt sought substantial indemnity costs, arguing that the creditor had advanced unproven allegations of fraud in affidavit material.
The court declined to award substantial indemnity costs, finding the allegations related to issues directed to be determined by the Registrar and not resolved in the appeal.
Applying Rule 57.01 and the principle that costs follow the event, the court awarded partial indemnity costs but reduced the amount to reflect work relating to issues outside the appeal.
Costs were fixed at $6,000 inclusive of HST, subject to deduction of a prior $1,500 costs award in favour of the creditor.
