This endorsement addresses the costs following a four-day trial where the plaintiff, Infinity Construction Inc., was completely successful, obtaining judgment for over $1.19 million plus interest.
The plaintiff sought costs on a substantial indemnity scale, arguing the defendants' deliberate withholding of known owed funds was vexatious and tactical.
The defendants argued for partial indemnity costs, disputing the plaintiff's hours and the applicability of Rule 49.10.
The court found that Rule 49.10 was not engaged as the plaintiff's offer was not made seven days before trial.
While the defendants' conduct in withholding payment came close to reprehensible conduct, it did not meet the high threshold required for substantial indemnity costs in these circumstances.
Exercising its discretion under the Courts of Justice Act and Rule 57.01, the court found the plaintiff's counsel's fees reasonable and awarded the plaintiff $175,000 inclusive of HST on a partial indemnity basis.