Kristen Riess

Costs were determined following motions concerning the validity of minutes of settlement and enforcement of judgment.

A defendant by counterclaim had unsuccessfully sought to set aside settlement minutes on the basis of alleged mental incapacity, while the bank successfully obtained judgment under those minutes.

The bank sought substantial indemnity costs exceeding $64,000, arguing the motion lacked merit and required significant preparation including expert psychiatric evidence.

The court held that although the bank was successful, substantial indemnity costs were not warranted and awarded partial indemnity costs of $19,900 against the unsuccessful moving party.

A co-defendant who supported the bank’s position was denied any costs because his participation duplicated the bank’s submissions.

The plaintiff self-regulatory organization brought a motion for summary judgment to recover $80,000 in costs ordered by its disciplinary hearing panel against a former registrant.

The defendant had previously been found guilty of misconduct involving undisclosed financial interests in client accounts and was permanently banned and fined by the disciplinary panel.

Appeals to the securities regulator and the Divisional Court were dismissed, and the defendant failed to pay the ordered costs.

The court held that membership in the regulatory organization created a contractual obligation to comply with its by-laws, rules, and disciplinary orders, including costs awards.

The court concluded that the costs order was enforceable through a civil action for breach of contract.