Sharon C. Vogel

The applicants sought $430,000 in costs following a successful application regarding a construction dispute.

The respondents argued that a settlement offer they made should limit the applicants' costs to the period before the offer, and that disbursements for online legal research should not be compensable.

The court found that the respondents' non-monetary settlement offer was more favourable than the judgment obtained by the applicants, as it would have led to a faster final determination of the underlying dispute.

Consequently, the applicants' costs were limited to $92,119.92 incurred before the offer.

The court also disallowed the $4,060.18 claimed for online legal research, finding the applicants failed to prove these costs did not fall within standard office overhead.

The applicants, a consortium of construction companies building the Eglinton Crosstown LRT, sought declarations that the COVID-19 pandemic constituted an Emergency under their Project Agreement, entitling them to a Variation Enquiry for an extension of the Substantial Completion Date.

The respondents moved to stay the application, arguing the contract required all litigation to be deferred until after Substantial Completion.

The court dismissed the motion for a stay, finding it would cause irreparable harm by depriving the applicants of their contractual right to seek an extension.

The court granted the declarations, holding that the pandemic was an Emergency and that the respondents had required the applicants to implement additional or overriding procedures (social distancing), thereby triggering the Variation Enquiry process.

Following a successful motion, the plaintiff sought partial indemnity costs of $17,000.

The defendant argued the amount was excessive and proposed $6,000.

The court found the requested amount fair and reasonable, noting it was almost identical to the partial indemnity costs incurred by the defendant itself.

Costs were fixed at $17,000.