Following a successful trial judgment in a contract dispute involving a loan advanced for the purchase of household contents, the successful party sought costs on a substantial indemnity basis due to allegations of fraud raised by the opposing parties.
The court rejected the request for substantial indemnity costs, finding that the unproven allegations of fraud did not justify elevated costs.
Applying s. 131(1) of the Courts of Justice Act and Rule 57.01 of the Rules of Civil Procedure, the court held that costs should follow the event and be awarded on a partial indemnity basis.
Considering fairness, reasonableness, proportionality, and the manner in which the litigation was conducted, the court awarded the successful party $28,967 inclusive of fees, disbursements, and HST.