The plaintiff, Pixiu Solutions Inc., discontinued its action against the three defendants: Canadian General-Tower Limited, CGT Shanghai Trading Co. Ltd., and CGT Changshu Co. Ltd. The defendants subsequently brought a motion to fix their costs of the action on a partial indemnity basis.
The plaintiff argued for a total costs award that would result in a "wash" against a prior costs order in its favour.
The court considered the factors under the Courts of Justice Act and Rule 57.01, including the reasonable expectations of the unsuccessful party and the necessity of separate counsel for distinct legal entities.
The court reduced the claimed costs for Changshu and Canadian General-Tower Limited due to disproportionality and time spent on issues not involving them, but allowed Shanghai's claim in full.
The aggregate costs awarded to the defendants were found to be proportionate and within the plaintiff's reasonable expectations.
