Following the dismissal of a Rule 21.01(3)(d) motion to strike a third party claim as frivolous, vexatious, and an abuse of process, the court addressed the quantum of costs payable.
The responding party sought partial indemnity costs exceeding $13,000, while the moving parties argued the hours claimed were excessive and invoked the principle of proportionality under Rules 1.04(1.1) and 57.01(1)(0.b) of the Rules of Civil Procedure.
The court considered the complexity of the privity and insurance coverage issues, the significance of the motion’s potential impact on the broader litigation, and evidence of duplication in preparation time by junior counsel.
Balancing proportionality and the importance of the issues, the court fixed partial indemnity costs at a reduced amount.
Costs of $7,000 plus disbursements and taxes were ordered payable forthwith.