Following the dismissal of the plaintiffs' action at trial, the defendant sought costs on a full indemnity scale pursuant to a contractual provision in the parties' agreement.
The plaintiffs argued that the provision did not apply to declaratory relief and did not explicitly state 'full indemnity'.
The court held that the contractual language allowing recovery of 'all reasonable costs' entitled the defendant to full indemnity costs.
However, the court declined to award costs for the defendant's U.S. counsel, finding their involvement was not reasonably required for the Ontario litigation.
The court awarded the defendant its Canadian counsel's fees and disbursements in full, totaling $2,192,609.12, finding the amount reasonable and proportionate given the high stakes of the commercial dispute.