This was a Costs Application following the dismissal of the Plaintiffs’ Claim. The Defendant, as the successful party, sought costs under Column 4 of Schedule C or enhanced costs, while the Plaintiffs argued that Column 1 costs were appropriate.

The Court confirmed that under Rules 10.29(1), 10.30(1), and 10.31, a successful party is presumptively entitled to costs, subject to judicial discretion. Rule 10.33 outlines the considerations relevant to the exercise of that discretion. The Court acknowledged its obligation to consider all relevant factors under Rule 10.33, including the nature, importance, and complexity of the issues, the conduct of the parties, and the reasonableness of positions taken.

Johnston J. found that the matter was not complex, the evidence was limited, and the issue was focused on coverage under an insurance policy. Both parties conducted the litigation in a manner consistent with Rule 1.2, including the use of agreed facts, the consent to a Summary Trial, and the Plaintiffs’ abandonment of some claims at the outset. While the Plaintiffs raised allegations of bad faith in their pleadings, the Court found these were not inflammatory in the insurance context and did not warrant enhanced costs.

Ultimately, the Court awarded the Defendant costs under Column 1 of Schedule C plus reasonable disbursements. No costs were awarded for the Costs Application itself due to the mixed success of the parties. Any unresolved issues regarding the Bill of Costs were left to a Review Officer.