F. Stephen Finch

The appellants sought to set aside costs orders made by the Court of Appeal and the Superior Court of Justice, arguing that the respondent's lawyers' fees were being paid by the Lawyers' Professional Indemnity Corporation (LawPro).

The Court of Appeal dismissed the request, finding that LawPro's agreement to backstop the fees did not remove the respondent's liability to pay its lawyers, and the courts were entitled to order costs against the losing parties.

TCR Holding Corporation amalgamated with several subsidiaries, inadvertently including one that had guaranteed a promissory note to the appellants.

Upon discovering the mistake, TCR applied to set aside the amalgamation.

The application judge granted the order, finding the inclusion was an inadvertent mistake and the appellants would receive a windfall if the amalgamation stood.

The appellants appealed.

The Court of Appeal dismissed the appeal, upholding the application judge's exercise of equitable jurisdiction to relieve against mistake and set aside the amalgamation.

Following a successful appeal, the court determined the costs of the proceedings below.

The defendants had made an offer to settle for $35,000, which the plaintiffs did not accept.

Because the plaintiffs ultimately recovered less than the offered amount, Rule 49.10(2) applied.

The plaintiffs were awarded partial indemnity costs up to the date of the offer, fixed at $15,000, and the defendants were awarded partial indemnity costs thereafter, fixed at $30,000.