R. Mitri

The plaintiffs changed counsel from Grillo Barristers to Karl Arvai Professional Corporation in a personal injury action.

A dispute arose over the transfer of the file, with Grillo demanding payment of approximately $11,000 in disbursements prior to releasing the file, relying on their contingency fee retainer agreement.

Arvai refused and initiated multiple proceedings, including motions to transfer the file and set aside a certificate of assessment.

The parties ultimately settled the substantive issues, agreeing to transfer the file upon payment of $4,000 in disbursements, but could not agree on costs.

The court declined to award costs to either party, noting the shockingly disproportionate waste of legal resources and emphasizing that parties should not be discouraged from settling by the threat of a substantial costs award.

The court determined costs following a motion in which the plaintiff sought to add additional defendants and obtain substituted service.

The insurer declined to provide addresses for the proposed defendants while disclosing their identities, citing confidentiality, which necessitated the plaintiff bringing the motion.

The court found that the motion could have been avoided had the insurer facilitated proper service earlier.

However, because the motion also sought production of police records, it was not fair to burden the defendant with all costs.

The court reduced the plaintiff’s claimed partial indemnity costs and ordered a modest costs award payable by the insurer.