Paul Hendrikx

Following a trial where the plaintiffs were successful and the third party action was dismissed, the court determined the costs payable by the defendants.

The plaintiffs were awarded costs on a partial indemnity scale up to the date of their Rule 49 offer to settle, and on a substantial indemnity scale thereafter.

The third party was awarded costs on a partial indemnity scale.

The court also fixed the prejudgment interest rate at 2.5% pursuant to the Courts of Justice Act.

The plaintiffs brought an action to enforce a $408,000 promissory note and consulting agreements executed in 1992 as part of a family grocery business succession plan.

The defendants argued the consulting payments were intended to pay off the note and claimed the third-party solicitor was negligent for acting for all parties.

The court found the agreements were independent, the defendants fully understood the terms, and the sale of the business triggered the note's payment.

The court dismissed the solicitor negligence claim, finding no breach of the standard of care as the parties were in agreement at the time.