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The court awarded $15,000 in partial indemnity costs following the successful dismissal of a counterclaim, declining substantial indemnity despite fraud allegations.
This costs endorsement follows a successful Rule 21 motion brought by the Gordin Family Members (defendants by counterclaim) to dismiss the counterclaim against them.
The court awarded partial indemnity costs of $15,000 plus HST to the Gordin Family Members.
The court declined to award substantial indemnity costs, finding that while fraud was alleged, the conduct did not rise to the level of reprehensible behavior warranting a higher scale, especially as the allegations had not progressed beyond the pleadings stage.
The court considered the Gordin Family Members' near-total success on the motion, their Rule 49 offer, and concerns regarding potential duplication of counsel efforts in determining a fair and reasonable amount.
The court struck a counterclaim against family members for HST underpayment due to a lack of pleaded causation.
The Gordin Family Members, defendants by counterclaim, brought a Rule 21 motion to strike portions of the counterclaim and dismiss it against them.
The counterclaim by Residences of Springhill Inc. (RSH) alleged fraudulent misrepresentation, civil fraud, and breach of contract related to an underpayment of HST on a condominium unit sale.
The court found no reasonable cause of action against the Gordin Family Members, as the pleadings failed to establish causation for the alleged torts and the breach of contract claim was negated by RSH's admission of receiving the full purchase price including HST.
The motion was granted, and the counterclaim was dismissed against the Gordin Family Members.