Following the dismissal of the plaintiff's personal injury action arising from a bicycle accident allegedly caused by the defendants' dog, the defendants sought substantial indemnity costs of over $294,000.
The court rejected the request for substantial indemnity costs, finding that the defendants' settlement offers lacked a substantive element of compromise and the plaintiff's conduct was not reprehensible.
Furthermore, the court reduced the defendants' partial indemnity costs by 40% to penalize their counsel's failure to disclose surveillance evidence, veterinary records, and other documents prior to trial, which undermined the policy of early settlement and full disclosure.