Following lengthy corporate litigation involving an application under the Business Corporations Act and the Winding-up and Restructuring Act, the parties resolved their dispute through Minutes of Settlement, leaving only the issue of costs for determination.
The proceedings included multiple interlocutory motions and separate claims that were ultimately settled.
The court considered the principles governing costs under s. 131 of the Courts of Justice Act and Rule 57.01 of the Rules of Civil Procedure, including reasonableness, encouragement of settlement, and partial indemnification.
Because the settlement did not determine a successful party and the parties had not exchanged costs outlines prior to settlement, the court held that each side should bear its own costs for the main application.
However, the applicants were ordered to pay $4,000 to the respondents for costs related to separate claims that had been commenced but not pursued.
