An unsuccessful plaintiff was ordered to pay a third party's costs on a partial indemnity basis, subject to significant reductions for unreasonableness and apportionment.
The court considered the allocation and quantum of costs following summary judgment in favour of Canadian Pacific Railway Company (CPR), where the third party, Canada Colors and Chemicals Limited (CCCL), sought costs from the plaintiff, 863880 Ontario Limited.
The court found that exceptional circumstances justified ordering the plaintiff to pay CCCL’s costs, but not the full amount claimed.
The court directed a revised calculation, holding the plaintiff responsible for half of CCCL’s reasonable costs up to the discontinuance of a related third party claim, and all reasonable costs thereafter, subject to a 20% reduction and further specific deductions.
SCJSuperior Court of JusticeMay 27, 2025