Following a successful summary judgment motion dismissing the plaintiff’s claim and granting judgment on a counterclaim subject to later assessment of damages, the defendants sought costs on a full indemnity basis.
The court reviewed the defendants’ claimed hours and rates in light of the Civil Procedure Rules Committee grid, the indemnity principle, and the factors under Rule 57.01 and s.131 of the Courts of Justice Act.
The court found the time expended and rates claimed to be reasonable and determined that the litigation conduct of the plaintiff reflected tactical litigation intended to harm a competitor.
While recognizing the discretion to award costs against corporate principals, the court declined to pierce the corporate veil due to insufficient evidentiary foundation.
Costs of $58,878.22 inclusive of HST and disbursements were awarded to the defendants.