The applicant's application was dismissed, leading to a costs endorsement.
The respondent sought substantial indemnity costs, arguing that her offer to settle (a dismissal) should attract Rule 49 consequences.
The applicant contended that an offer to dismiss does not engage Rule 49 because a dismissal is not a "recovery" of judgment.
The court agreed with the applicant, citing *S. & A. Strasser Ltd. v. Richmond Hill (Town)*, and found that Rule 49 did not apply.
Furthermore, the court determined that the applicant's conduct did not rise to a level warranting substantial indemnity costs under Rule 57.01(1), as per *Iannarella v. Corbett*.
Consequently, costs were fixed on a partial indemnity basis at $20,000.00, all-inclusive, to be paid by the applicant to the respondent.