Following a successful motion enforcing a Canadian-recognized foreign judgment obtained against a foreign state and its agencies for terrorism-related conduct, the successful parties sought substantial indemnity costs.
The court considered whether the conduct of the foreign state justified elevated costs.
It held that substantial indemnity costs require reprehensible litigation conduct, not merely objectionable political or international conduct by a foreign state.
Because the defendants did not participate in the proceeding and simply ignored it, their conduct did not meet the threshold for elevated costs.
Partial indemnity costs of $15,456.05 were awarded as fair and reasonable under Rule 57 of the Rules of Civil Procedure.
