Court File and Parties

COURT FILE NO.: CV-20-651894

DATE: 20210607

ONTARIO SUPERIOR COURT OF JUSTICE

RE: MEHRAN KERAMATI, Applicant

-and-

YUN CHU KO and RE/MAX WEST REALTY INC., BROKERAGE, Respondents

BEFORE: F.L. Myers J.

COUNSEL: Craig Colraine, for the applicant Symon Zucker, for the respondent Ko.

READ: June 5, 2021

Costs Endorsement

[1] In this application Mr. Keramati was successful in maintaining the forfeiture of Ms. Ko’s $100,000 deposit. See: Keramati v Ko, 2021 ONSC 3682.

[2] On March 11, 2021, Mr. Keramati offered to settle for $95,000 plus costs on a partial indemnity basis.

[3] The offer to settle meets the requirements to qualify as a Rule 49 offer. As Mr. Keramati obtained a judgment that was more favourable than the terms of his offer to settle, under Rule 49.10 (1), he is entitled to his partial indemnity costs to the date of his offer and substantial indemnity costs thereafter.

[4] Ms. Ko submits that there was a good faith disagreement that should not result in a substantial indemnity costs award. But I am not finding that costs are payable on a substantial indemnity basis due to any misconduct by Ms. Ko. Rather, this is the normal and intended operation of Rule 49.

[5] Mr. Keramati made a small but tangible offer to compromise both in the $5,000 discount and the continuation of partial indemnity costs after the date of the offer when the rule would presumptively entitle him to substantial indemnity costs.

[6] Ironically, the offer of a 5% compromise plus the costs differential is not far off the 7% proportion that Ms. Ko’s deposit bore to the purchase price she agreed to pay. Both are modest but meaningful and not trifling or trivial.

[7] I have reviewed the applicant’s Costs Outline and am satisfied that the rates claimed on both partial and substantial bases are well the range of reasonableness and market. The hours claimed are also reasonable especially with delegation of work to a junior colleague at appropriately lower rates.

[8] Ms. Ko is therefore liable to pay costs to Mr. Keramati of $19,500 all-inclusive.

F.L. Myers J.

Release Date: June 7, 2021