Following an unopposed motion striking a corporate plaintiff from a statement of claim due to lack of corporate capacity after dissolution, the defendants sought costs on a substantial indemnity basis against both the corporate and individual plaintiffs.
The court considered whether the conduct of the litigation justified elevated costs and whether the individual plaintiff should be personally liable.
The court held that substantial indemnity costs are reserved for exceptional circumstances such as unproven allegations of fraud or litigation misconduct, and those circumstances were not present.
The evidence linking the individual plaintiff to the corporation was insufficient to impose costs against him personally.
Costs were awarded only against the corporate plaintiff on a partial indemnity basis.
