Nelson A. McKay QC

Following a successful summary judgment motion, the moving parties sought full indemnity costs fixed at $33,000 based on alleged misconduct by the opposing party and a prior settlement offer.

The court held that the opposing party’s conduct did not warrant sanction and that the purported settlement offer did not qualify as a Rule 49 offer and was not a genuine attempt to resolve the litigation.

The court found the claimed costs disproportionate to the amount at stake and the work required.

Applying a reasonable proportionality assessment, the court fixed partial indemnity costs at $9,000.

A law firm sued the parents of a former client seeking payment of approximately $84,000 in legal fees incurred in the client’s family law litigation.

The parents brought a motion for summary judgment arguing they were not contractually bound to pay the fees.

The plaintiff alleged the parents had provided an indemnity based on their conduct and statements during meetings that were tape recorded.

The court held that the evidence, including the retainer agreement, written acknowledgements, and transcripts of the meetings, did not establish that the parents had undertaken an indemnity or guarantee to the law firm.

The court concluded there was no genuine issue requiring a trial and dismissed the action.