Following a successful motion staying an Ontario action for lack of jurisdiction arising from injuries sustained during an ATV excursion in Mexico, the defendant sought substantial indemnity costs exceeding $85,000.
The court considered the principles governing costs under s. 131 of the Courts of Justice Act and Rule 57.01 of the Rules of Civil Procedure, including proportionality, access to justice, and the financial circumstances of the unsuccessful parties.
The court rejected the defendant’s argument that a Rule 49 offer triggered presumptive costs consequences, finding the offer lacked meaningful compromise and amounted to an invitation to capitulate.
Given the relatively straightforward half‑day jurisdiction motion, the unsettled legal context before the Supreme Court of Canada’s decision in Van Breda, and the plaintiffs’ limited financial means, the court reduced the costs significantly.
Costs were fixed at $20,000 inclusive of disbursements and HST.
