SUPERIOR COURT OF JUSTICE - ONTARIO

Commercial List

Court File No: CV-11-422373-00CL
Date: 20120123

RE: James Joseph Lukezic, Walker Hall Winery Ltd.
Plaintiffs

• and -

Royal Bank of Canada
Defendant

Before: The Honourable Mr. Justice Glenn A. Hainey

Counsel:
James Joseph Lukezic, In Person,

Milton A. Davis,

for the Defendant, Royal Bank of Canada

Heard: Written submissions

ENDORSEMENT AS TO COSTS

[ 1 ] I invited the Royal Bank of Canada (“RBC”) and Mr. Lukezic to provide me with written costs submissions following the release of my Reasons for Decision on September 9, 2011.

[ 2 ] I received written costs submissions from RBC, but I did not receive any submissions from Mr. Lukezic.

[ 3 ] RBC was successful on its motion to have the plaintiffs’ claim dismissed and to have Mr. Lukezic declared a vexatious litigant.

[ 4 ] RBC submits that it should be awarded costs on a substantial indemnity basis because of Mr. Lukezic’s vexatious behaviour that is reviewed in detail in my Reasons for Decision.

[ 5 ] Further, RBC argues that Mr. Lukezic’s vexatious behaviour has continued despite my decision declaring him a vexatious litigant. The details of his continued vexatious conduct are set out at paragraph 9 of RBC’s costs submissions.

[ 6 ] In assessing the appropriate amount of costs that should be awarded, I must consider all of the factors contained in Rule 57.01 of the Rules of Civil Procedure. Normally, costs should be awarded on a partial indemnity scale unless there are special circumstances that justify a higher award of costs on a substantial indemnity basis.

[ 7 ] In my view, the vexatious conduct of Mr. Lukezic constitutes special circumstances that justify an award of costs on a substantial indemnity basis. As I outlined in my Reasons for Decision, he has continually abused the justice system by persistently commencing unreasonable actions. He has made serious and unfounded allegations against his former lawyers, judges, a judicial assistant and counsel acting for opposing parties. He has persisted in pursuing actions that have been dismissed and he has disobeyed court orders and has not paid countless costs awards made against him.

[ 8 ] His persistent, vexatious behaviour, including his continuing abuse of the process of the court, makes a costs award on a substantial indemnity basis necessary to protect the integrity of our judicial system.

[ 9 ] In arriving at my decision to award costs on a substantial indemnity scale. I rely on the decision of Dambrot J. in Church of Jesus Christ of Latter Day Saints v. King , [1988] O.J. No. 3924 .

[ 10 ] I have carefully reviewed RBC’s Bill of Costs and I am satisfied that the amount of costs claimed on a substantial indemnity basis of $69,121.33 is fair and reasonable and ought to have been within the reasonable contemplation of the parties.

[ 11 ] RBC is awarded costs payable forthwith by James Joseph Lukezic fixed at $69,121.33.

HAINEY, J.

DATE: January 23, 2012