Following judgment finding the defendant liable for passing off and awarding $10,000 in compensatory damages, the court determined the issue of costs.
The plaintiff sought over $40,000 in partial indemnity costs while the defendant sought costs in its favour due to the plaintiff’s failure to obtain punitive damages.
The court emphasized that costs in simplified procedure actions under Rule 76 must remain significantly lower than those in ordinary procedure and proportionate to the recovery.
Considering the modest damages award, settlement offers, and Rule 57.01 factors, the court found both parties’ proposed costs excessive.
The plaintiff’s costs were fixed at $15,000 inclusive of taxes and disbursements.