Following a trial decision dismissing a claim for unpaid royalties under a patent licence agreement, the successful defendant sought partial indemnity costs exceeding $637,000.
The plaintiff accepted entitlement to costs but argued the claim was excessive relative to the scope of the litigation and its own costs.
Applying Rule 57.01 of the Rules of Civil Procedure and the principles in Boucher, the court assessed factors including the complexity of the dispute, the importance of the issues, the parties’ expectations, and the reasonableness of the hours and disbursements claimed.
The court found the defendant’s claimed hours were very high compared to the nature of the four‑day trial and reduced certain disbursements.
Costs were fixed at $300,000 for fees and $90,000 for disbursements, plus HST.