Legal Blog

Costs – Substantial or Full Indemnity

Net Connect Installation Inc. v. Mobile Zone Inc. 2017 Ont CA

The trial judge awarded costs on a full indemnity basis because the defendant sold and encumbered properties during the course of the proceedings, fabricated evidence, and conducted herself in other ways that were not set out in the Court of Appeal decision. The Court noted that elevated costs (beyond partial indemnity) are justified in narrow circumstances only: where an offer to settle is engaged or when the losing party has behaved in a manner that is worthy of sanction. Once costs are elevated, substantial indemnity costs are the norm and full indemnity is applicable only if the conduct worthy of sanction is especially bad. The court allowed the full indemnity costs award to stand, noting that it was one of the rare and exceptional cases where this type of award was justified.

Written by Jonathan Speigel Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.