The court determined costs following a trial in which the plaintiff obtained judgment exceeding its earlier settlement offer.
The issues included the appropriate prejudgment interest rate, the applicable scale of costs under Rule 49.10 of the Rules of Civil Procedure, and whether the plaintiff’s claimed fees were excessive.
The court rejected the plaintiff’s request for a higher prejudgment interest rate and applied the statutory rate under the Courts of Justice Act.
Because the plaintiff obtained a judgment more favourable than its settlement offer, it was entitled to partial indemnity costs to the date of the offer and substantial indemnity costs thereafter.
The court reduced the fee component by 12% to reflect the substantial indemnity scale rather than full indemnity and fixed total fees at $50,000 plus HST, with disbursements of $5,134.16 plus HST.