Following a dispute over costs after the underlying proceeding, the applicants sought costs on a substantial indemnity basis, while the respondents argued for a significantly reduced amount and objected to certain disbursements.
The court held that substantial indemnity costs were not warranted because there was no reprehensible conduct in the litigation.
On a partial indemnity basis, the court reviewed the hours claimed by counsel and rejected arguments that the applicants’ legal team engaged in excessive duplication, although some preparation time was considered excessive.
The court also allowed disbursements for professional witnesses, finding that accountants called as fact witnesses were entitled to compensation for their time in preparing affidavits, attending cross‑examinations, and testifying.
Total costs payable were fixed at $58,034 inclusive of HST.