Following the dismissal of the plaintiff's defamation action after a seven-day trial, the defendants sought costs of approximately $88,000, arguing for substantial indemnity costs from the date of their Rule 49 offer to settle.
The plaintiff argued no costs should be awarded.
The court found the Rule 49 offer defective as it did not specify costs, rejecting the claim for substantial indemnity.
Applying principles of proportionality, the court awarded the defendants costs fixed at $40,000 inclusive of disbursements and taxes.
