Following a successful application concerning governance of a religious society, the applicants sought full indemnity costs of $280,000 against numerous respondents.
They argued that the respondents engaged in reprehensible conduct by refusing to comply with the society’s constitution, attempting to undermine election results, and advancing questionable evidence during litigation.
The court held that elevated costs require either a Rule 49 offer or reprehensible conduct in the litigation itself, and that most of the criticized behaviour occurred outside the conduct of the litigation.
Applying the reasonableness principles under s.131 of the Courts of Justice Act and r.57.01 of the Rules of Civil Procedure, the court determined that partial indemnity costs were appropriate.
Costs of $160,000 inclusive of fees, disbursements, and taxes were awarded.