Following a trial in which the plaintiffs obtained judgment for $25,000 in punitive damages but failed on other claims, the court determined costs of the action.
The plaintiffs sought substantial indemnity costs exceeding $276,000, while the defendants argued costs should be limited given the modest recovery.
The court considered proportionality, the reasonable expectations of an unsuccessful party, and factors under Rule 57.01 of the Rules of Civil Procedure.
Although the plaintiffs were only moderately successful, the defendants’ deceitful conduct and litigation behaviour lengthened the proceeding and justified an enhanced costs award.
The court fixed costs payable by the defendants at $50,000 inclusive of fees, HST, and disbursements.
