The plaintiff's action and the defendant's third party claim arising from a failed real estate transaction were dismissed on consent following a summary judgment motion.
The court was tasked with determining liability for and the quantum of costs.
Applying the principles from Milina v. Bartsch, the court found that the third party claim naturally and inevitably flowed from the plaintiff's action, justifying a departure from the normal rule that a defendant pays the costs of a third party it brings into the litigation.
The plaintiff was ordered to pay the costs of both the defendant and the third parties.
Costs were fixed on a partial indemnity basis at $20,000 plus HST and disbursements for each, as the amounts claimed were disproportionate to the complexity of the proceeding.