Following dismissal of a counterclaim alleging wrongful dismissal and breach of contract and seeking $11.8 million in damages, the successful defendant by counterclaim sought substantial indemnity costs exceeding $299,000.
The court considered Rule 57 of the Rules of Civil Procedure and the principles governing cost awards under the Courts of Justice Act, including the effect of an unaccepted Rule 49 settlement offer and allegations of uncooperative litigation conduct.
Although the court accepted that some conduct of opposing counsel created additional expense, it declined to award substantial indemnity costs.
Applying the objective of fairness and reasonableness to the unsuccessful party, the court fixed costs on a partial indemnity basis.
