Following settlement of a mortgage enforcement action, the court determined the appropriate costs payable by the mortgagor to the mortgagee.
The mortgage contained a contractual provision requiring the mortgagor to pay the lender’s legal costs on a solicitor-and-client basis.
The court held that such provisions do not displace the court’s discretion under s. 131 of the Courts of Justice Act and Rule 57.01 of the Rules of Civil Procedure.
Concerns about an inaccurate discharge statement under the Mortgages Act, block-billed legal accounts, and proportionality justified refusing full indemnity costs.
Applying the principles of fairness and reasonable expectations of the unsuccessful party, the court reduced the claimed $65,831.32 in costs to $25,000 inclusive of taxes and disbursements.