Following a trial judgment awarding the plaintiffs damages and dismissing the defendant’s counterclaim, the court addressed the plaintiffs’ request for costs.
The plaintiffs had served a Rule 49 offer to settle that was more favourable than the judgment ultimately obtained.
Applying Rule 49.10(1) of the Rules of Civil Procedure, the court held the plaintiffs were entitled to partial indemnity costs to the date of the offer and substantial indemnity costs thereafter.
In determining quantum under Rule 57.01, the court considered proportionality, the defendant’s large and largely unsuccessful counterclaim, the conduct of the litigation, and the reasonableness of counsel’s rates and disbursements.
The court reduced the requested costs and fixed a total award payable by the defendant.