The plaintiffs, having succeeded on a summary judgment motion in a real estate transaction dispute, sought costs.
The court determined the application of Rule 49.10(1) of the Rules of Civil Procedure, which dictates costs consequences for unaccepted offers to settle.
The defendants argued that a non-disparagement clause in the plaintiffs' offer to settle rendered it invalid for Rule 49.10 purposes.
The court found the non-disparagement provision to be clear and not unreasonable, distinguishing it from cases where an offer's terms were vague or uncertain.
As the judgment obtained by the plaintiffs was more favourable than their offer, they were awarded partial indemnity costs to the date of the offer and substantial indemnity costs thereafter.
The court fixed costs at $33,039.76, considering the factors under Rule 57.01(1) and the principle of fairness and reasonableness.