The plaintiff, Craig Johnston, sought substantial indemnity costs after successfully suing the defendant Municipality for wrongful termination, being awarded damages for breach of contract, punitive damages, and aggravated damages.
The Municipality did not dispute entitlement to costs but argued for partial indemnity or a lower full recovery amount.
The court awarded Johnston costs on a substantial indemnity basis, primarily due to the Municipality's failure to make a reasonable settlement offer and Johnston's successful offer.
However, the court reduced the quantum sought by Johnston from approximately $260,000 to $160,000, finding the higher amount disproportionate to the non-exemplary damages awarded.