Following a successful fraud trial brought under s. 38 of the Bankruptcy and Insolvency Act, the court determined the appropriate scale and quantum of costs payable to two successful creditor plaintiffs.
The defendants had engaged in fraudulent conveyances, document alteration, and litigation conduct that delayed the trial and attempted to mislead the court.
The court held that such conduct justified an award of full indemnity costs, an exceptional remedy reserved for egregious dishonesty and abuse of the judicial process.
After reviewing the draft bills of costs, the court reduced certain duplicative and insufficiently documented claims but fixed substantial full indemnity costs payable to each plaintiff.
The defendants were held jointly and severally liable for the costs, payable forthwith.