Following dismissal of the plaintiff’s action, the successful defendant sought costs including substantial indemnity costs after a rejected settlement offer under Rule 49 of the Rules of Civil Procedure.
The court considered the interaction of Rules 49.10, 49.13, and 57.01 and the jurisprudence governing elevated cost awards.
The court held that substantial indemnity costs require reprehensible or egregious conduct unless specifically triggered by Rule 49.10, which did not apply where the plaintiff obtained no judgment.
As there was no misconduct by the plaintiff, elevated costs were not warranted.
The court nevertheless awarded the successful defendant partial indemnity costs in a reduced amount reflecting fairness and reasonable expectations.
