10.29: General rule for payment of litigation costs

Case Summary

In a complex matter that had been extensively litigated by the Parties, Sullivan J. issued a global Costs Endorsement in July 2022. Since the issuance of the Costs Endorsement, one of the Defendants had repeatedly asked the Court for assistance regarding the Plaintiff’s failure to satisfy a Costs Award with funds held in trust by the Plaintiff’s lawyer.

Justice Sullivan referenced Rule 10.29, which states that an unsuccessful party to an Action must pay a Costs Award forthwith. To determine what “forthwith” meant, Sullivan J. canvassed the case law and held that it meant “immediately”, and Justice Sullivan found that the words in Rule 10.29 meant that “costs are to be paid immediately and that practically courts seem to allow up to a month for that to occur”.

Here, the Plaintiff was well outside the one-month timeframe and was directed to satisfy the Costs Award immediately, meaning within two days after the Parties appeared before Sullivan J.

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