Court File and Parties

COURT FILE NO.: CV–16–559939 DATE: 20180515 SUPERIOR COURT OF JUSTICE - ONTARIO

RE: Shahnaz Hatami, Applicant AND: 1237144 Ontario Inc., Respondent

BEFORE: P. J. Monahan J.

COUNSEL: Elena Mazinani, for the Applicant J. Anthony Caldwell for the Respondent

HEARD: January 11, 2018

COSTS ENDORSEMENT

[1] On January 26, 2018, I dismissed the Applicant’s motion for summary judgment and ordered that a deposit of $200,000 paid in connection with a real estate transaction be released to the Respondent. I also awarded the Respondent its costs on a partial indemnity basis. Because I had excluded an expert report tendered by the Respondent, I ordered that no costs were payable with respect to the preparation of that report. Having been unable to settle the quantum of costs, the parties invite me to determine the costs payable based on their written cost submissions.

[2] The Respondent seeks a costs award of $31,015.72, including fees of $26,020, along with disbursements and HST. The fees are calculated on the basis of approximately 60 hours of preparation time at a (partial indemnity) rate of $400 per hour, plus a counsel fee of $2300 for attendance at the Rule 20 mini-trial, which took an entire day.

[3] The Applicant argues that the costs claimed are excessive given that the issues involved were not overly complex and the Applicant had abandoned most of her claims prior to the Rule 20 mini-trial. The Applicant also objects to the fact that the partial indemnity rate claimed is $400 per hour, which is 80% of counsel’s actual rate of $500 per hour. The Applicant suggests that a costs award in the range of $11,000 would be appropriate.

[4] In my view, the amount of time spent by counsel for the Respondent was reasonable in the circumstances. I note that counsel was required to prepare for and attend at two separate cross examinations, involving four witnesses. There were also three pretrial attendances as well as four attendances at Civil Practice Court. Counsel has not claimed any amounts for the preparation of the expert report that was excluded at the mini-trial.

[5] I am sympathetic to the Applicant’s observation that the partial indemnity rate claimed is 80% of Respondent counsel’s actual hourly rate. A partial indemnity award is normally calculated at 60% of actual costs incurred, which in this case would suggest a partial indemnity hourly rate of $300 per hour. Utilizing this reduced rate, counsel fees for preparation would be reduced to $17,790, plus a counsel fee of $2300, for a total fees award of $20,090. HST on this amount is $2611.70, plus disbursements of $1613.12, resulting in a total costs award of $24,314.82.

[6] Having regard to the amount at issue in the litigation, the amount of preparation required, and the numerous attendances, in my view a costs award in the amount of $24,314.82 is reasonable in the circumstances. I so order, with this amount being payable by the Applicant within 30 days.

P.J. Monahan J.

Date: May 15, 2018