Chapman

The moving parties (Dover) sought leave to appeal a costs order made following an 18-day trial of three issues regarding a joint venture dispute.

The trial judge had awarded Dover partial indemnity costs of $120,000 plus disbursements, significantly reducing their claimed fees and expert costs despite Dover's success on the issues.

Dover argued the trial judge erred in applying the principles of proportionality, settlement offers, and in failing to award substantial indemnity costs due to the opposing party's conduct.

The Divisional Court dismissed the motion for leave to appeal, finding no error in principle and holding that the trial judge's discretionary costs award was entitled to considerable deference.

This was a costs endorsement following a four-week trial on three discrete issues in a commercial dispute involving oil field valuation and investor interests.

The successful respondents sought full indemnity costs based on alleged misconduct and offers to settle.

The court rejected full and substantial indemnity costs, holding the conduct allegations did not justify elevated costs and that the respondents' offer was not a technically valid Rule 49 offer because it extended beyond the issues tried.

Exercising discretion, the court nonetheless awarded reduced partial indemnity fees and limited disbursements, including a reduced allowance for certain expert fees.