Marni Pernica

The plaintiffs sought leave to appeal a $52,000 costs order made against them following their successful motion to amend the statement of claim.

The plaintiffs argued the motions judge misapplied the 'indulgence' principle by awarding costs against the successful moving party.

The Divisional Court dismissed the application, finding no conflicting decisions or reason to doubt the correctness of the highly discretionary, fact-specific costs award.

The court held the stringent test for leave to appeal under Rule 62.02(4) was not met.

In complex estate and commercial litigation arising from estate planning transactions and a will that effectively disinherited family members, the plaintiffs sought leave to further amend their statement of claim to add allegations of knowing assistance in breach of trust and fiduciary duty against an accountant and additional particulars against other defendants.

Several defendants opposed the amendment on the basis of prejudice and limitation periods under the Limitations Act, 2002.

The court held that under Rule 26.01 of the Rules of Civil Procedure leave to amend should be granted unless non-compensable prejudice would result, and that disputes about discoverability and limitation periods should be determined by the trial judge on a full evidentiary record.

As discoveries were ongoing and trial remained more than a year away, any prejudice could be addressed through costs.

Leave to amend was granted with costs awarded to certain defendants for prejudice arising from the amendments.