Peter Nicholson

Following the dismissal of an action alleging misrepresentations relating to the establishment of a Mitsubishi dealership, the court determined the appropriate costs award.

The defendants sought partial indemnity costs exceeding $325,000 after successfully obtaining summary judgment dismissing the claim as statute-barred under the Limitations Act and lacking evidentiary merit.

The court considered the factors under Rule 57.01 of the Rules of Civil Procedure and the principle of reasonableness, including access to justice concerns discussed in appellate authority.

While the defendants’ legal work was substantial and effective, certain disbursements and the overall magnitude of the claim were considered excessive.

The court therefore reduced the claimed amount and fixed costs at $150,000 inclusive of taxes and disbursements.

The defendants brought a motion for summary judgment to dismiss the plaintiffs' action for damages arising from an alleged franchise agreement and negligent misrepresentations regarding the viability of a Mitsubishi dealership.

The court found that the plaintiffs' action was statute-barred under the Limitations Act, 2002, as the plaintiff knew or ought to have known of the claim more than two years before commencing the action.

Furthermore, the court held that the alleged misrepresentations were forward-looking forecasts, which are not actionable, and that the entire agreement and release clauses in the dealer agreement provided a complete defence.

The action was dismissed, and the defendant's counterclaim for an unpaid debt was allowed.