MarshallZehr Group Inc. ("MZ") sought substantial indemnity costs of $55,266.78 after successfully obtaining summary judgment against Ideal Developments Inc. and related entities ("Ideal") for $508,071.09 and dismissal of Ideal's counterclaim.
MZ based its claim on a contractual provision in the Commitment Letter and, alternatively, an unaccepted Offer to Settle.
Ideal proposed $36,273 on a partial indemnity basis.
The court, while acknowledging the contractual right to substantial indemnity, exercised its discretion to award costs on a basis between partial and substantial indemnity.
This decision was influenced by the unclear language of the Commitment Letter, MZ's muddied termination of the loan, and the fact that MZ had already made a significant return.
The court awarded MZ $40,000, all inclusive.