The plaintiff commenced an action against the defendant regarding a restaurant business dispute, and the defendant counterclaimed.
Shortly before trial, the plaintiff discontinued its action.
The defendant offered to discontinue the counterclaim on a without-costs basis, which the plaintiff rejected.
The defendant then discontinued the counterclaim.
Both parties sought costs of the discontinued proceedings.
The court dismissed both claims for costs, finding that the general rule of indemnifying a successful party applied and neither party could claim success on the merits.
The court awarded the defendant partial indemnity costs of the costs motion, as the plaintiff had rejected a sensible offer to resolve the matter without costs.