Robert Max Isles

Following the dismissal of a summary judgment motion concerning unpaid invoices and an equitable counterclaim, the court determined the appropriate costs order.

The responding party sought substantial indemnity costs exceeding $36,000.

The court held that substantial indemnity costs under Rule 20.06 of the Rules of Civil Procedure require unreasonable conduct or bad faith, neither of which was established.

Given that the summary judgment motion had merit and was described as a close call, the court ordered that costs be in the cause and fixed them at $12,000 inclusive of HST and disbursements.

The plaintiff helicopter services provider brought a motion for summary judgment to recover unpaid invoices under a services agreement for helicopter transportation at a remote mining exploration site.

The defendant mining company disputed portions of the invoiced charges and asserted a counterclaim alleging damages arising from the conduct of a pilot, including events affecting relations with a local community and allegedly unnecessary flight charges.

The court considered Rule 20.04 of the Rules of Civil Procedure and the “full appreciation” test from Combined Air Mechanical v. Flesch.

The court held that the factual disputes, including credibility issues and the potential application of equitable set‑off, were sufficiently intertwined with the plaintiff’s claim that they required resolution at trial.

Summary judgment was therefore inappropriate.