After the dismissal of an employee’s wrongful dismissal action seeking unpaid salary and bonus compensation, the defendant sought elevated costs relying on a rejected pre-trial settlement offer.
The court considered Rules 49.13 and 57.01 of the Rules of Civil Procedure and the appellate guidance restricting elevated costs awards against unsuccessful plaintiffs absent reprehensible conduct.
The court held that although the defendant had made a settlement offer, the plaintiff’s claim was not frivolous and the litigation had been conducted efficiently.
As there was no egregious conduct warranting substantial indemnity costs, the court declined to award elevated costs.
Costs were fixed at $35,000 payable by the plaintiff.