Following a six‑day civil fraud trial in which the plaintiff recovered damages exceeding $150,000, the court determined the appropriate costs award.
The plaintiff sought substantial indemnity costs, relying on findings that the defendants engaged in deceitful and exploitative conduct and pointing to litigation conduct during trial.
Applying Rules 1.04 and 57.01 of the Rules of Civil Procedure and relevant appellate guidance, the court held that substantial indemnity costs are reserved for rare and exceptional cases involving reprehensible conduct.
The court found that the conduct of one individual defendant and the corporate defendant warranted substantial indemnity costs, while another defendant’s lesser culpability justified only partial indemnity costs.
Costs were fixed at $50,000 on a substantial indemnity scale and $32,500 on a partial indemnity scale, with joint and several responsibility apportioned among the defendants.