Harvey J. Kirsh

A contractor commenced a $205 million action against a public transit authority arising from a major subway expansion contract.

The authority moved under Rule 21.01(1)(a) for determination of a contractual clause prohibiting litigation until the contractor’s final invoice had been processed, and sought a stay under s. 106 of the Courts of Justice Act.

The court held that interpretation of the clause was a pure question of contractual interpretation suitable for determination on a Rule 21 motion.

The provision was enforceable between sophisticated commercial parties and clearly prohibited commencing an action before the contractual triggering event.

As the triggering event had not yet occurred, the action was stayed pending its occurrence.

Following reasons on several construction lien motions relating to a subway station project, the successful lien claimant sought partial indemnity costs exceeding $82,000.

The responding parties challenged the amount as excessive and attempted to dissect the bill of costs without producing their own costs outlines as required under Rule 57.01(6) of the Rules of Civil Procedure.

The court emphasized that costs fixing is not an item-by-item assessment and that reasonable expectation and indemnity principles govern the exercise.

The absence of a costs outline from the objecting party undermined its argument for reductions.

The court fixed costs largely as claimed, awarding partial indemnity costs plus additional costs for preparing submissions.