Tanya Goldberg

The Court of Appeal for Ontario issued an endorsement regarding the costs of an appeal.

The court awarded the respondents costs in the total amount of $60,000, inclusive of disbursements and applicable taxes, to be divided $35,000 to the respondent corporation and $25,000 to the individual respondents.

The appellants were notified by public health authorities of potential exposure to tuberculosis at the respondent hospital.

Although none tested positive, they brought a class action claiming damages for psychological harm caused by the notification.

The motion judge granted summary judgment dismissing the claims because the appellants did not suffer a recognizable psychiatric illness.

On appeal, the appellants argued that the Supreme Court of Canada in Mustapha eliminated the recognizable psychiatric illness threshold.

The Court of Appeal dismissed the appeal, holding that Mustapha did not change the law and that a recognizable psychiatric illness remains the threshold for compensable psychological injury in negligence.