This ruling addresses the determination of trial costs following an appeal where the Court of Appeal set aside a judgment against the defendants and remitted the costs issue.
The defendants sought substantial indemnity costs, citing an oral settlement offer and the plaintiff's egregious conduct.
The court rejected the claim for substantial indemnity costs, emphasizing the requirement for written offers to settle under Rules 49.02 and 49.13, and noting that while the plaintiff's conduct was egregious, the defendants also contributed to an unhealthy relationship, making it inappropriate to single out one party for enhanced costs.
Applying Rule 57.01 factors, the court awarded partial indemnity costs to the defendants, finding them substantially successful.
Due to discrepancies and unreliability in the defendants' submitted bills of costs, the court based the partial indemnity award on the plaintiff's bill of costs as a reasonable estimate, ordering the plaintiff to pay $25,956 plus HST and $3,637.58 in disbursements.