Following the dismissal of an application, the successful respondents sought costs on a substantial indemnity basis after being personally named in allegations of bad faith and oppression.
The court considered Rule 57.01(1) of the Rules of Civil Procedure, including proportionality, the seriousness of personal allegations against individual directors, and an earlier settlement proposal that could have resolved the dispute.
Although the applicant had an arguable issue relating to an allegedly undisclosed liability in a condominium status certificate, the court found the litigation strategy unnecessarily complex and disproportionate to the amount at stake.
Balancing these factors, the court declined substantial indemnity but awarded substantial costs reflecting the respondents’ success and the unnecessary allegations.
Costs were fixed at $15,000 payable within 30 days.