2017 ONSC 2928

COURT FILE NO.: 16-59964 DATE: 2017-05-15

ONTARIO SUPERIOR COURT OF JUSTICE

B E T W E E N:

HALTON STANDARD CONDOMINIUM CORPORATION NO. 627

Applicant

Rohit Kumar, for the Applicant

• and -

GRANDVIEW LIVING INC., 2388710 ONTARIO INC., JOHN MATAS, GORDON MATAS, SHARIEF ZAMAN, ZAMAT INC., DEPENDABLE ENERGY INC., MATAS HOMES INC. and BLANEY MCMURTRY LLP

Respondents

J. Ivan Marini, for the Respondents, Grandview Living Inc., 2388710 Ontario Inc., John Matas, Gordon Matas, Sharief Zaman, Zamat Inc., Dependable Energy Inc., Matas Homes Inc. John Polyzogopoulos and Tammy Evans, for the Respondent, Blaney McMurtry LLP

COSTS RULING

[1] On April 12, 2017 I released my reasons for judgment in this application. The applicant was successful: I ordered the arbitration agreement and arbitration award to be enforceable against the Grandview respondents. Blaney was unsuccessful in opposing the application on the basis it had a valid solicitors’ charging order over certain property that was to be transferred under the arbitration agreement and award.

[2] The parties were unable to agree upon costs. I have received costs submissions from the applicant and from the respondent, Blaney. I received no submissions from the Grandview respondents.

[3] The applicant seeks its costs of the application to enforce the terms of the arbitration agreement, awarding a costs decision in the amount of $7,516.70 on a full indemnity scale or $5,410.02 on a partial indemnity scale, as against the Grandview respondents. It seeks the costs with respect to the motions pertaining to the charging order in the amount of $39,491.57 on a substantial indemnity basis or $26,500.87 on a partial indemnity basis as against Blaney.

[4] The applicant was successful on the application. It is entitled to its costs with respect to enforcing the terms of the arbitration agreement, award and costs decision as against the Grandview respondents. The costs were incurred because Grandview failed to comply with the terms of the agreement and award. The Grandview respondents shall pay to the applicant its costs on a partial indemnity basis fixed in the amount of $5,400.00, inclusive of HST and disbursements.

[5] With respect to the solicitors’ charging order, the Condominium Corporation was successful and the charging order was set aside to allow for a transfer in accordance with the arbitration agreement. Blaney submits that there should be no order as to costs against it because the applicant had some notice of the charging orders and the applicant ought not to have expected that Grandview would honour its obligations under the arbitration agreement or award voluntarily. In addition, Blaney was caught in the middle of the dispute and its motion was reasonable and appropriate in light of Grandview’s failure to pay the fees.

[6] While it was the failure of Grandview to pay the fees owed to Blaney that led it to oppose the application and it was Blaney that took those steps, Blaney was unsuccessful. The applicant was successful. In the normal course, an unsuccessful party is required to pay the costs of the successful party. There is no reason to depart from this general principle in this case. Therefore, Blaney is liable to the applicant for the costs associated with the charging order.

[7] I have reviewed the bill of costs associated with the charging order. Blaney made no submissions with respect to the quantum of the costs. I find their costs to be reasonable. There is no reason to depart from the general rule that costs should be awarded on a partial indemnity basis. I order that Blaney pay to the applicant its costs associated with the charging orders fixed in the amount of $26,000.00, inclusive of HST and disbursements.

Sweeny J.

DATE: 2017-05-15