Hugh M. DesBrisay

Following a trial where the plaintiff achieved partial success in a partnership dispute, the parties made submissions on costs.

The defendants had made a Rule 49 offer to settle 19 years into the litigation.

The court found that the defendants beat their offer when comparing the trial judgment plus the plaintiff's costs up to the date of the offer.

Applying Rule 49.10(2), the plaintiff was entitled to partial indemnity costs up to the offer date, and the defendants were entitled to partial indemnity costs thereafter.

The court declined to reduce either party's entitlement based on conduct or divided success, resulting in a net costs award of $179,174.88 payable to the plaintiff.

The plaintiff, a former partner in a law firm with the defendants, brought an action for a declaration of partnership dissolution, an accounting, and damages for breach of fiduciary duty and conversion of shares.

The court found that the parties had reached a binding settlement agreement regarding the plaintiff's departure from the partnership, precluding further adjustments or liability for a Vancouver office lease.

However, the court found the defendants liable for conversion of the plaintiff's personal shares held as security, awarding $65,226.15 in damages.

The court also awarded $50,000 in damages for breach of fiduciary duty due to the defendants' failure to disclose partnership draws taken shortly before the plaintiff's departure, though it rejected claims that this failure caused the plaintiff's subsequent significant tax liabilities.