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The court awarded partial indemnity costs, rejecting proportionality arguments due to the respondent's weak defenses.
This endorsement addresses the costs following a judgment where the Applicant, Looking Glass Group Ltd., was awarded damages for breach of contract.
The Applicant sought costs on a substantial indemnity basis or, alternatively, on a partial indemnity basis.
The Respondent acknowledged liability for costs but argued for a lower amount.
The court rejected the claim for substantial indemnity costs, finding no reprehensible conduct by the Respondent.
Instead, the court awarded the Applicant partial indemnity costs in the amount of $48,406.42, finding this amount fair and reasonable given the Respondent's weak arguments and lowball settlement offers, which unnecessarily increased litigation expenses and impeded access to justice.
Summary judgment Application decision
The applicant, Looking Glass Group Ltd. (LGG), sought payment under a marketing agreement with its former customer, TidySquares Limited, for commissions and minimum payments.
The agreement stipulated minimum payments if TidySquares intentionally failed to supply inventory, unless due to force majeure.
TidySquares ceased supplying inventory, arguing force majeure due to manufacturer issues and that LGG waived its rights, and that the minimum payment clause was an unenforceable penalty.
The court found TidySquares intentionally stopped supplying inventory due to a change in business model, rejected the force majeure and waiver arguments, and upheld the minimum payments clause as a genuine pre-estimate of damages.
