Following a successful civil action, the plaintiff sought substantial indemnity costs based on an offer to settle under the Rules of Civil Procedure.
The court considered whether the judgment obtained exceeded the settlement offer once prejudgment interest was calculated.
The plaintiff argued that the court should exercise its discretion under the Courts of Justice Act to increase the prejudgment interest rate above the statutory presumption of 0.5%.
The court declined to do so, finding no compelling reason to depart from the statutory rate and noting potential prejudice to the defendant.
Because the judgment plus interest did not exceed the settlement offer, the court awarded costs on a partial indemnity basis.
