Following dismissal of an action seeking specific performance of an alleged agreement of purchase and sale for land, the court determined the appropriate costs award.
The successful defendant sought substantial indemnity costs throughout or alternatively after a formal offer to settle.
The court held that substantial indemnity costs require reprehensible conduct and were not justified, even where the defendant had made a Rule 49 offer and the action was later dismissed.
Applying Rule 57.01 factors and considering the litigation conduct and proportionality of the amounts claimed, the court awarded partial indemnity costs with reductions for excessive legal work while allowing expert report disbursements incurred in response to anticipated expert evidence.
