D. Shanks

The applicant, an estate trustee, sought costs following a successful motion for directions regarding the sale of an estate property to the respondent beneficiaries.

The court applied the modern approach to estate litigation costs, emphasizing the 'loser pays' principle to discourage treating the estate as an ATM for litigation.

The court awarded the applicant partial indemnity costs of $3,500 payable by the respondents, and a further $5,000 payable by the estate to fully indemnify her reasonable costs as trustee.

The applicant, an estate trustee and beneficiary, brought a motion for directions regarding the sale of the deceased's home to two other beneficiaries, who were also estate trustees.

The purchasing beneficiaries sought to credit their one-third beneficial interests against the discounted fair market value purchase price.

The applicant argued that the full purchase price should be paid to the estate to cover potential estate expenses before final distribution.

The court directed that the beneficiaries must pay the full discounted purchase price to the estate, without crediting their beneficial interests, to ensure sufficient funds for anticipated estate costs.

Following a seven‑day construction lien trial in which the plaintiff obtained judgment exceeding its pre‑trial offer to settle, the court determined the appropriate costs award.

The plaintiff sought elevated costs relying on Rule 49.10 and alleged reprehensible litigation conduct by one of the defendants.

The court held that the offer to settle engaged Rule 49.10 and that the defendant’s conduct at trial— including untruthful testimony, refusal to admit obvious facts, late allegations of deficiencies, and unfounded accusations of dishonesty— constituted reprehensible conduct that lengthened the trial.

Substantial indemnity costs were therefore appropriate, subject to reductions for certain law clerk and client‑incurred expenses considered overhead or not recoverable.

The defendants were ordered to pay costs totalling $88,679.30.