PriceWaterhouseCoopers

Following dismissal of the plaintiff’s construction tendering claim, the court determined the appropriate costs award.

The successful defendant sought partial indemnity costs to the date of its Rule 49 offer and substantial indemnity costs thereafter.

The court declined to award substantial indemnity costs, holding that a nominal offer to dismiss the action without costs did not justify enhanced costs absent sanctionable conduct by the plaintiff.

Given the unsettled state of the law on construction tendering issues and the legitimate legal dispute raised, the court found the case warranted litigation.

Partial indemnity costs were awarded with reductions to certain fees and disbursements, including expert and travel expenses.

The appellants appealed a trial judgment finding that no enforceable agreement was reached for a fur salon licence, as essential terms were missing.

The respondent cross-appealed the finding that it negligently misrepresented its ability to terminate an existing licence, and appealed the costs award, specifically the allowance of expert witness fees as a full disbursement on a partial indemnity scale.

The Court of Appeal dismissed the appeal, cross-appeal, and costs appeal, holding that the trial judge made no palpable errors and correctly treated expert fees as disbursements not subject to partial indemnity reduction.