COURT FILE NO.: CV-19-615799-0000
DATE: 2019/08/19
ONTARIO
SUPERIOR COURT OF JUSTICE
BETWEEN:
dead end survival, llc
Applicant
- and -
GEORGI MARHASIN and MARHASIN WAREHOUSE
Respondent
Paul V. Lomic and Sabrina Salituro for the Applicant
HEARD: In writing
PERELL, J.
REASONS FOR DECISION - COSTS
[1] The Applicant, Dead End Survival, LLC brought an application to enforce a judgment of the United States District Court for the Northern District of Georgia Atlanta Division. The judgment granted both an injunction and $2 million in damages against the Respondent, Georgi Marhasin, who is a sole proprietor operating as Marhasin Warehouse. I granted the application.[^1]
[2] I directed that if the parties cannot agree about the matter of costs, they may make submissions in writing beginning with Dead End’s submissions within twenty days of the release of the Reasons for Decision followed by Mr. Marhasin’s submissions within a further twenty days.
[3] I received timely costs submissions from Dead End, but I received no responding costs submissions from Mr. Marhasin.
[4] Dead End seeks substantial indemnity costs comprised of $32,071.76 for legal fees inclusive of HST and $1,344.03 for disbursements inclusive of HST. The total claim for substantial indemnity costs is $33,373.40. Dead End’s actual costs were $36,932.25.
[5] In the immediate case, there are two circumstances that justify costs on a substantial indemnity basis.
[6] First, some costs at a substantial indemnity scale are justified pursuant to Rule 49, the offer to settle rule. On April 22, 2019, Dead End served an offer to settle that was not accepted. Had it been accepted, Mr. Marhasin’s liability would have been reduced by over $1.0 million.
[7] The second justification for ordering costs on a substantial indemnity basis is that in unsuccessfully defending the application, Mr. Marhasin made allegations of fraud and impropriety against Jeffrey T. Breloski, Dead End’s counsel in Georgia.
[8] Mr. Breloski has an admirable record and reputation as an officer of the U.S. Army Special Forces Group (Airborne) and as officer of the courts in the U.S. His honour and his integrity were attacked, and these unfounded and unproven allegations are worthy of being sanctioned by a punitive costs award.
[9] Accordingly, I grant Dead End’s claim for costs as requested.
Perell, J.
Released: August 19, 2019
COURT FILE NO.: CV-19-615799-0000
DATE: 2019/08/19
ONTARIO
SUPERIOR COURT OF JUSTICE
BETWEEN:
dead end survival, llc
Applicant
- and -
GEORGI MARHASIN and MARHASIN WAREHOUSE
Respondent
REASONS FOR DECISION - COSTS
PERELL J.
Released: August 19, 2019.
[^1]: Dead End Survival, LLC v. Marhasin et al., 2019 ONSC 3569.