The appellant brought a motion for reconsideration of costs awarded in the underlying appeal, seeking substantial indemnity costs based on a prior settlement offer.
The Tax Court of Canada found the settlement offer was arbitrary and not based on facts in accordance with the law, and thus did not trigger the enhanced costs rule.
However, the Court exercised its discretion to increase the party and party costs of the underlying appeal from $4,000 to $8,110, and awarded $840 for the costs of the motion.
