Following settlement of an eviction application by a housing co‑operative concerning rental arrears and repeated late payments, the only remaining issue was costs.
The co‑operative sought full indemnity costs exceeding $21,000 pursuant to its by‑laws and the Courts of Justice Act.
The respondent tenant argued the amount was disproportionate and would cause undue hardship given her financial circumstances and that arrears had already been paid.
The court held that while the by‑laws contemplated substantial indemnity costs, the court retained discretion to reduce the award where full indemnity costs would be unfair or unduly onerous.
Considering proportionality, hardship, and the simplicity of the application, the court reduced the costs substantially.