Joseph J. Hoffer

Following a successful appeal regarding the operation of a homeless shelter, the appellant church sought full indemnity costs of $163,479.54, arguing it was a public interest litigant.

The respondent municipality argued no costs should be awarded as it was also acting in the public interest.

The Court of Appeal rejected both arguments, finding the case did not meet the exceptional threshold for full indemnity costs under Carter, nor did the municipality's enforcement of its by-law exempt it from the normal costs rules.

Costs were awarded to the appellant on a partial indemnity basis fixed at $90,000.

The appellant church operated a homeless shelter in its basement.

The respondent municipality sought an injunction to stop the shelter, arguing it violated the local zoning by-law which permitted 'church' uses but prohibited soup kitchens and food banks.

The application judge granted the injunction.

On appeal, the Court of Appeal held that the application judge erred in his interpretation of the by-law.

The Court found that the homeless shelter fell within the by-law's definition of 'church-sponsored community activities and projects'.

The appeal was allowed and the injunction was dismissed.