Following dismissal of a legal negligence action against a lawyer and her firm, the court considered the appropriate costs award.
The defendants sought full indemnity costs after an eight‑day trial, arguing the plaintiff pursued unfounded allegations, including claims impugning the lawyer’s honesty, and continued litigation despite evidence showing no negligence or damages.
The court applied the principles governing costs under Rule 57 of the Rules of Civil Procedure and s. 131 of the Courts of Justice Act, including the purposes of indemnification, encouraging settlement, and discouraging improper conduct.
Finding the plaintiff advanced serious unsubstantiated allegations, changed evidence at trial, and pursued the action despite knowing it lacked merit, the court held the conduct was exceptional and reprehensible.
Full indemnity costs were therefore awarded.