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The court awarded substantial indemnity costs to a fourth party after the claim against it was discontinued, finding the claim was issued frivolously and without due diligence.
M.S. Hardwood brought a motion for substantial indemnity costs against Gaydon Contractors Ltd. following Gaydon's discontinuance of a Fourth Party Claim.
Gaydon had issued the Fourth Party Claim against M.S. Hardwood based on a cursory mention of flooring deficiencies in the Plaintiff's Statement of Claim, despite earlier discoveries indicating no such issues.
Gaydon also brought a cross-motion seeking to recover these costs from the Plaintiff and Defendants.
The court granted M.S. Hardwood's motion, finding Gaydon failed to conduct due diligence and that its claim was frivolous and vexatious.
Gaydon's cross-motion was dismissed, with the court noting minimal culpability for the Plaintiff and none for the Defendants.
The court also commented on the disproportionate costs incurred by all parties in arguing these motions.
