Following a Judgment in the Plaintiff’s favour, Madam Justice Ho heard submissions from the Defendant and Third Party with respect to Costs and interest. While the Defendant sought 50% of its fees and disbursements from the Third Party for the entire lawsuit, the Third Party argued that it should pay taxable Costs pursuant to Schedule C, plus reasonable disbursements for steps taken by the Defendant in relation to the Third Party Claim.

Madam Justice Ho reasoned that granting 50% of fees and disbursements would be tantamount to enhanced Costs on a partial indemnity basis. However, such Costs are only available where a party’s conduct is “reprehensible, scandalous or outrageous conduct”, which was not true for the case at bar, and thus the Defendant’s position was rejected.

Lastly, Her Ladyship considered the factors in Rule 10.33 including the low complexity of the matter, the conduct of the Third Party which did not impede progress of the proceedings, and the equal apportionment of liability between the Defendant and Third Party, ultimately concluding that Costs pursuant to Schedule C were appropriate.