Heather Cohen

Following the dismissal of two related civil actions, the successful defendants sought a costs order requiring the plaintiffs’ counsel personally to pay a portion of the trial costs associated with calling 22 witnesses.

The defendants argued that the evidence of those witnesses was inadmissible under the parol evidence rule and that counsel’s decision to call them wasted approximately ten days of trial time.

The court considered Rule 57.07 of the Rules of Civil Procedure and the court’s inherent jurisdiction to award costs against a solicitor.

The judge held that such orders should be made only in rare circumstances and typically require conduct approaching recklessness, abuse of process, or bad faith.

The court concluded that counsel’s decision to lead the evidence was not reckless or abusive and declined to order costs against counsel personally.

The defendants brought a motion for summary judgment seeking dismissal of a claim by a warranty administrator to recover amounts paid from a statutory guarantee fund for condominium common element defects.

The motion raised issues of statutory interpretation under the Ontario New Home Warranties Plan Act concerning whether a condominium corporation is entitled to enforce warranty rights relating to common elements.

The court held that the statute deems a condominium corporation to be the owner of common elements for warranty purposes and therefore entitled to enforce such warranties.

Alternatively, the warranty administrator was entitled to pursue recovery through statutory subrogation after paying claims from the guarantee fund.

The defendants’ motion was dismissed and the indemnitor was declared personally liable for any deficiency once the amount is quantified.