In supplementary reasons addressing costs following earlier reasons under the Companies’ Creditors Arrangement Act, the applicant mortgage lender sought full indemnity costs based on contractual mortgage provisions.
The court confirmed that while contractual entitlement to full indemnity costs exists, the court retains supervisory authority to ensure the amounts claimed are fair and reasonable.
The applicant’s bill of costs was reduced for inefficiencies, including excessive research time and the use of senior counsel for work that could have been delegated or billed at a lower rate.
Additional reductions were made for excessive preparation time on reply materials.
The court ultimately fixed reasonable full indemnity costs and rejected arguments for further reductions based on partial success or for awarding costs to another resisting respondent.
