This decision addresses costs following the dismissal of the plaintiffs' Small Claims Court action for damages related to deteriorating deck beams, which was dismissed due to an expired limitation period and failure to establish liability and damages.
The defendants sought enhanced costs based on an unaccepted offer to settle.
The court, bound by Divisional Court and Court of Appeal precedent, affirmed that enhanced cost provisions (r. 14.07(2) and r. 49.10(2)) do not apply when a plaintiff's claim is wholly dismissed.
However, the court exercised its discretion under s. 29 of the Courts of Justice Act to penalize unreasonable behaviour.
Manitoulin Cedar Products, which made a reasonable offer to settle, was awarded elevated costs ($9,573.00), while Whittington Engineering Ltd. and IWS Wood Products Inc., who made no financial offer and showed unwillingness to settle, were awarded only the statutory maximum 15% of the claim amount plus disbursements ($5,323.00).
