Following a successful application to declare a municipal by-law invalid, the applicant sought costs on a partial indemnity basis up to the date of an offer to settle, and substantial indemnity costs thereafter.
The respondent argued each party should bear its own costs due to the public interest nature of the case.
The court awarded costs to the applicant, finding the public interest exception did not apply.
However, the court declined to award substantial indemnity costs under Rule 49 because the applicant's offer contained terms beyond the scope of the litigation.
The court fixed partial indemnity costs at $74,006.60, adjusting the claimed rates to 60% of substantial indemnity rates.