Robert J. van Kessel

Following a successful application concerning governance of a religious society, the applicants sought full indemnity costs of $280,000 against numerous respondents.

They argued that the respondents engaged in reprehensible conduct by refusing to comply with the society’s constitution, attempting to undermine election results, and advancing questionable evidence during litigation.

The court held that elevated costs require either a Rule 49 offer or reprehensible conduct in the litigation itself, and that most of the criticized behaviour occurred outside the conduct of the litigation.

Applying the reasonableness principles under s.131 of the Courts of Justice Act and r.57.01 of the Rules of Civil Procedure, the court determined that partial indemnity costs were appropriate.

Costs of $160,000 inclusive of fees, disbursements, and taxes were awarded.

The plaintiff, a not-for-profit corporation operating Sikh temples, sought summary judgment declaring it had 38 members and an interlocutory injunction restraining the defendants from seizing control of the temples.

The defendants claimed the membership was 1087 and sought the appointment of a monitor and auditor, alleging financial mismanagement.

The court granted summary judgment finding there were only 38 members, as the defendants' claims regarding additional members were factually unfounded, barred by delay, and precluded by estoppel.

The court continued the interlocutory injunction against the defendants, finding they had unlawfully seized control of the plaintiff, and dismissed their request for a monitor and auditor.