Following a successful appeal overturning the dismissal of an action and awarding damages for false arrest and trespass, the court was tasked with determining trial costs payable by one defendant.
The successful plaintiffs sought full or substantial indemnity costs exceeding $400,000, arguing the litigation raised issues of public importance and that the defendant advanced meritless positions.
The defendant argued the claim was disproportionate to the modest damages award and that much of the trial addressed unsuccessful allegations including conspiracy and punitive damages.
Applying s.131 of the Courts of Justice Act and Rule 57.01 of the Rules of Civil Procedure, the court emphasized proportionality, the conduct of the parties, and the reasonable expectations of the losing party.
Costs were awarded on a partial indemnity basis in a reduced amount reflecting the complexity and importance of the issues while accounting for excessive litigation steps.