The McKillips, successful defendants in a motion to strike, sought substantial indemnity costs against the plaintiff Trustee in Bankruptcy.
The court awarded costs on a substantial indemnity basis for the period when fraud allegations were pleaded and partial indemnity thereafter, totaling $42,836.
The court found the fraud allegations, even if later clarified, warranted enhanced costs due to their serious nature and the Trustee's recklessness in pleading them without sufficient particulars.
The court also ruled that the costs should be paid by the Estate, or personally by the Trustee if the Estate lacked funds, rejecting the Trustee's argument for set-off against amounts owed by Susan McKillip in a separate unjust enrichment action.
