The appellants appealed a trial judgment awarding costs in the form of damages and substantial indemnity costs against Westmont.
The Court of Appeal set aside the award of costs as damages due to lack of specificity in the pleadings.
The Court upheld the substantial indemnity costs for the main claim under Rule 49.10, but found that Rule 49 should not apply to the counterclaim against Westmont, as it was not a party to the counterclaim.
The costs award was apportioned and reduced to $190,000.
