The defendant, Brian Jeffery, brought a motion for leave to discontinue his third-party claim against the Ministry of Transportation (MTO) and for a determination of costs, after the main action and other third-party claims had been dismissed.
The MTO refused to agree to a without-costs dismissal or discontinuance and brought a cross-motion for dismissal with costs for delay or summary judgment.
The court found that Jeffrey's third-party claim was not frivolous, vexatious, or pursued in bad faith.
Despite the MTO's insistence on costs, the court determined it was unreasonable for the MTO to do so, especially given Jeffrey's early offer to discontinue the claim.
The court granted Jeffrey's motion, discontinuing the third-party action against the MTO, and awarded partial indemnity costs in favour of Jeffrey.