Stephanie R. Quesnelle

Following dismissal of a summary judgment motion brought by a co-defendant seeking to dismiss the plaintiffs’ claim and a cross-claim, the court addressed costs between the co-defendants.

The responding insurer sought partial-indemnity costs exceeding $13,000 after successfully opposing the motion, arguing the matter involved moderate complexity and significant financial exposure under the Insurance Act.

The moving defendant argued the costs were excessive and should either be reduced or made payable in the cause, particularly given the prematurity of the summary judgment motion and issues surrounding the insurer’s standing.

The court held that the insurer was entitled to costs as the successful party but reduced the amount claimed, finding the requested sum excessive in the circumstances.

Costs were fixed at $6,750 payable by the moving defendant.

The defendant dealership moved for summary judgment to dismiss the plaintiffs' personal injury claim and the co-defendant insurer's cross-claim, arguing that the driver's prior criminal conviction for taking the vehicle without consent conclusively established a lack of consent.

The co-defendant insurer opposed the motion.

The court dismissed the motion, finding that the criminal conviction did not have preclusive effect because the driver faced little jeopardy and there was no robust examination of the facts.

The court also held that the insurer had standing to oppose the motion and maintain its cross-claim despite not yet having indemnified the plaintiffs, in order to avoid a multiplicity of proceedings.