Following a judgment declaring the respondent in breach of an agreement of purchase and sale and ordering the return of a $40,000 deposit, the successful applicants sought substantial indemnity costs based on a pre-litigation demand letter.
The court found the letter did not qualify as a Rule 49 offer to settle because it was essentially a demand letter with a one-day deadline.
The court awarded costs on a partial indemnity basis, fixing the quantum at $14,000 after considering the principles of indemnity, the reasonable expectations of the unsuccessful party, and the complexity of the proceedings.