Kelly Hou

Following a successful summary judgment motion dismissing the plaintiffs' action, the successful defendant sought costs of $25,000 to $30,000 on a substantial indemnity basis, relying on an expired offer to settle.

The plaintiffs argued for costs in the range of $10,000 to $15,000.

The court found that substantial indemnity costs were not justified as the offer to settle had expired long before the motion and the case raised important issues for the plaintiffs.

The court awarded the defendant costs on a partial indemnity scale in the amount of $23,376.43.

The defendant, a second mortgagee, brought a motion for summary judgment to dismiss the plaintiffs' action alleging an improvident sale of a property under a power of sale.

The plaintiffs, who held a third mortgage, received nothing from the sale and claimed the defendant failed to obtain fair market value and inflated costs.

The court found that the sale was not improvident, noting the property had been recently exposed to the market, the sale price was supported by appraisals, and the purchaser was ready and willing to close.

The court also held that the plaintiffs had already received an accounting and any further dispute regarding costs should be pursued through the assessment process under the Mortgages Act.

The motion for summary judgment was granted and the action dismissed.