John Ross Carruthers

The plaintiff, Johnvale Contracting Ltd., was awarded costs following a trial where it obtained judgment for $21,903.58 on a lien claim.

The court found the defendant, Zonte Investments Inc., did not act reasonably in response to offers to settle, particularly given the trial evidence.

Zonte's offers were consistently below the judgment amount, while Johnvale's lowest offer was only slightly above Zonte's last offer.

The court also considered Zonte's unsubstantiated allegations of fraud against Johnvale, which attract substantial indemnity costs.

Despite the costs exceeding the judgment amount, the court declined to reduce the award on proportionality grounds, emphasizing that a plaintiff should not be undercompensated for legitimately incurred costs.

The court adjusted the hourly rate for trial costs to be more reasonable.

Johnvale Contractors Ltd. brought an action to perfect a construction lien against Zonte Investments Inc. for renovation work on a condominium unit.

Zonte disputed the final invoice amount, claiming various discounts and back-charges.

The court conducted a summary trial, assessing the credibility of the principals of both parties and analyzing each disputed item.

The court largely sided with Johnvale, denying most of Zonte's claimed discounts, but allowed some credits and a back-charge for electrical code violations.

Johnvale's claim was reduced from $24,327.43 to $21,903.58.

Following reasons for decision in an employment dispute, the court addressed the issue of costs and interest.

The parties reached an agreement fixing costs payable to the plaintiff, with partial indemnity costs awarded up to a specified date and substantial indemnity costs thereafter.

The court ordered total costs of $72,715.11 including disbursements and HST.

The endorsement also amended a paragraph of the earlier reasons to align with the Courts of Justice Act regarding pre‑judgment and post‑judgment interest rates.