Following dismissal of the plaintiff’s claims against the defendants—one through a successful motion to strike as an abuse of process and the other through summary judgment—the court considered the issue of costs.
The defendants sought substantial indemnity costs, alternatively partial indemnity costs.
The court reviewed the governing principles under s. 131 of the Courts of Justice Act and Rule 57 of the Rules of Civil Procedure, including the purposes of indemnification, encouraging settlement, and discouraging inappropriate litigation conduct.
The court noted the plaintiff’s unsupported and serious allegations, the abuse of process against one defendant, and the plaintiff’s failure to accept a favourable Rule 49 offer.
Costs were awarded to the defendants in the amount of $20,000 inclusive of fees, disbursements, and HST.