Following two procedural motions in a construction-related civil action, the successful party sought costs including on a substantial indemnity basis due to a prior settlement offer.
The court held that although the offer to settle was reasonable, the resulting order was not as favourable or more favourable than the offer and therefore did not justify substantial indemnity costs.
Applying the discretion under s.131 of the Courts of Justice Act and the factors in rule 57.01 of the Rules of Civil Procedure, the court found the claimed legal fees and preparation time reasonable.
The successful party was awarded costs on a partial indemnity basis.
