Rachel Goldenberg

The defendant sought approximately $100,000 in costs on a full indemnity basis against the plaintiff and its lawyers following the dismissal of the action against it and the discharge of a certificate of pending litigation registered against property.

The court considered the principles governing costs under s.131 of the Courts of Justice Act and Rule 57 of the Rules of Civil Procedure, including the high threshold for awarding elevated costs or personal costs against counsel.

The court held that although the defendant was successful, the plaintiff’s decision to include the defendant in the claim was reasonable given the timing of the mortgage transfers and allegations of misappropriation.

The plaintiff withdrew its claim promptly after receiving evidence establishing the legitimacy of the defendant’s mortgage interest.

Partial indemnity costs of $35,000 were awarded against the plaintiff, and the request for costs against the plaintiff’s lawyers was dismissed.

Following motions for security for costs brought by two defendants, the court addressed the costs of those motions.

The defendants had obtained security for costs orders but in amounts lower than requested.

The court considered the factors under s. 131 of the Courts of Justice Act and Rules 1.04, 56.01, and 57.01 of the Rules of Civil Procedure.

While the moving parties were largely successful, reductions were warranted due to incomplete success and procedural issues related to timing of a statement of defence.

The court declined to award substantial indemnity costs and instead fixed fair and reasonable partial indemnity costs payable by the plaintiff.

Defendants brought motions for security for costs under Rule 56.01(1)(a) of the Rules of Civil Procedure against a foreign corporate plaintiff resident in Russia with no assets in Ontario.

The court confirmed the two‑stage framework for security for costs motions and held the defendants met the initial burden because the plaintiff was ordinarily resident outside Ontario.

The plaintiff failed to demonstrate impecuniosity or other circumstances making a security order unjust, despite having substantial funds abroad.

The court exercised its discretion to order staged security for costs, including amounts related to pending motions to discharge a certificate of pending litigation.

The court also granted a sealing order over a document containing non‑party investors’ financial information and awarded partial indemnity costs to the plaintiff for the confidentiality motion.