Following a jury verdict finding that a motor vehicle accident did not cause injury to the plaintiff, and dismissal of the action on the statutory threshold for non‑pecuniary damages, the court determined the appropriate costs award.
The defendants sought substantial indemnity costs based on alleged misconduct and a withdrawn Rule 49 offer to settle.
The court held that substantial indemnity costs were not justified because the plaintiffs’ conduct was not reprehensible and the defendants’ offer had been withdrawn prior to trial, removing automatic Rule 49 consequences.
However, the defendants were the successful parties and were entitled to partial indemnity costs throughout, with the court fixing a lump sum award after considering proportionality, trial complexity, and counsel conduct that lengthened the proceeding.
