Richard Bourdeau

Following a successful appeal from a Small Claims Court decision, the appellant sought costs of $23,800.

The court found this amount disproportionate to the $7,000 originally awarded at trial.

Applying the principles of proportionality under the Rules of Civil Procedure and the Courts of Justice Act, the court fixed the appellant's costs at $500 for the trial and $5,000 for the appeal, for a total of $5,500.

The appellant employer appealed a Small Claims Court decision awarding the respondent former employee $7,000 in general damages for mental distress and $1,500 in costs following her termination.

The Divisional Court allowed the appeal, finding the trial judge erred in law by awarding damages for mental distress without evidence of bad faith or unfair conduct in the manner of dismissal, contrary to Supreme Court of Canada jurisprudence.

The court also set aside the costs award, holding that the trial judge exceeded the mandatory statutory limits under the Courts of Justice Act and the Small Claims Court Rules.