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Substantial indemnity costs awarded to former counsel due to unproven and unsupported allegations of fraud.
This is a costs endorsement following the dismissal of a motion brought by the defendants to set aside a charging order in favour of their former counsel.
The former counsel sought costs on a substantial indemnity basis, relying on unaccepted offers to settle and the defendants' unsupported allegations of fraud against him.
The court refused to defer the costs determination to a future assessment hearing.
The court awarded substantial indemnity costs to the former counsel, finding that the defendants' unproven and unsupported allegations of fraud warranted sanction, and fixed the costs at $5,400.
The court dismissed a motion to set aside a solicitor's charging order, finding no evidence to support the former clients' allegations of fraud.
The Defendants brought a motion to set aside a charging order previously granted to their former solicitor, John Gray, over costs owed by the Plaintiffs.
The Defendants alleged fraud and newly discovered facts, claiming Gray wrote off accounts, that funds were not actually held by Plaintiffs' counsel, and that Gray failed to comply with Law Society by-laws.
The court dismissed the motion, finding no evidence to substantiate the allegations of fraud or improper conduct by Gray.
The court clarified that accounting practices and Law Society compliance issues were not grounds to set aside the charging order, but rather matters for a costs assessment or the Law Society.
The decision also provided instructions for the delivery of the real estate file and restricted further motions regarding the costs dispute between the Defendants and Mr. Gray without leave of the court.
