J. Postnikoff

Following a 7-day trial regarding a neighbourhood dispute, the successful defendants/plaintiffs by counterclaim sought costs of $75,972.99 on a substantial indemnity basis.

The court found that their Rule 49 offer to settle was not strictly beaten at trial, and the unsuccessful party's conduct was not so reprehensible as to warrant substantial indemnity costs.

Applying the principles of reasonableness and proportionality under Rule 57, the court fixed costs payable to the successful parties at $47,194.81.

Following a successful summary judgment motion dismissing a civil action, the defendant sought costs on a substantial indemnity basis.

The court considered Rule 20.06 of the Rules of Civil Procedure and the discretionary factors under s.131 of the Courts of Justice Act and Rule 57.01.

The moving party argued the claim lacked merit and that litigation conduct justified punitive costs.

The court held that the plaintiffs’ conduct was not sufficiently reprehensible, scandalous, or outrageous to justify substantial indemnity costs and that no Rule 49 offers to settle were made.

Partial indemnity costs were awarded with minor reductions to hours and disbursements.