The applicant, Wawanesa, withdrew its application for a declaration of coverage and duty to defend, leading to a costs dispute.
The respondent, Dominion, sought costs for work incurred.
The court, exercising its discretion under the Courts of Justice Act and Rule 57.01, found that costs should follow the event, as Wawanesa abandoned its application.
Despite Dominion's excessive costs claim, the court fixed costs at $10,000 plus HST and disbursements, deeming it a fair and reasonable amount for the unsuccessful applicant to pay.