Joseph Etigson

Following the dismissal of a motion for partial summary judgment in an intellectual property dispute, the court determined the appropriate costs award.

The successful plaintiffs sought elevated costs exceeding $200,000, alleging the motion was unreasonable.

The court held that although the motion was aggressive, it was not unreasonable and costs should therefore be awarded on a partial indemnity basis.

After reviewing hourly rates, fees, and disbursements under Rule 57.01(1) of the Rules of Civil Procedure, several claimed amounts were reduced, including photocopying, travel expenses, and expert-related disbursements.

The court fixed total costs at $137,382 inclusive of fees, disbursements, and taxes.

The defendants brought a motion for partial summary judgment to dismiss the claims against three of the four corporate defendants, arguing they were not parties to the relevant agreements and that the 'group enterprise' doctrine does not exist in Canadian law.

The court found that the 'group enterprise' concept exists as a carefully limited exception to the corporate veil principle.

Given the complex evidence of inter-corporate connections and the equitable breach of confidence claims, the court concluded there were genuine issues requiring trial and declined to use its enhanced fact-finding powers.

The motion for partial summary judgment was dismissed.