This decision addresses costs arising from an application to appoint an arbitrator in a dispute over a new home purchase agreement.
The applicants, purchasers, sought an arbitrator after alleging the vendor (respondent) breached the agreement and they terminated it.
The respondent initially opposed arbitration but later agreed after the applicants' termination notice.
The court had previously ruled in favor of the applicants' choice of arbitrator but reserved on costs.
This decision awards costs to the respondent for the period prior to the applicants' termination notice, finding that the arbitration clause, which related to termination disputes, was not triggered until actual termination occurred.
The court found the applicants' interpretation of the arbitration agreement did not justify enhanced costs, and awarded a net amount of $7,500 in costs to the respondent.