Legal Blog

Substantial Indemnity Costs

100 Bloor Street West Corporation v. Barry’s Bootcamp Canada Inc. 2025 Ont CA

Landlord and tenant disputed the calculation of the tenant’s property tax obligations under a ten-year triple net lease for a commercial property. The landlord attempted to evict the tenant, leading to an injunction and multiple applications and motions. The motion judge held for the tenant and awarded substantial indemnity costs against the landlord, deeming its litigation conduct “reprehensible.” The Court of Appeal allowed the landlord’s appeal regarding the costs, finding that while the landlord’s attempt to evict the tenant was unreasonable, the litigation itself was not a “ruse.” Even if substantial indemnity costs were applicable, the court would have reduced the amount as not-proportionate. Had it been asked, it would have also reduced the disbursement amount that included unsupported time of corporate counsel.

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