QUESTOR TECHNOLOGY INC v STAGG

The individual Defendants were declared to be in civil contempt, and they appealed that decision (the “First Appeal”). The Plaintiff also appealed the Court’s decision not to find the corporate Defendant in contempt (the “Second Appeal”). Both Appeals were dismissed.

The Defendants argued that no costs should be awarded on the Appeals because competing Costs Awards would result in an offset. Alternatively, the Defendants argued that both Respondents in the First Appeal and the Second Appeal are entitled to costs pursuant to Rule 14.88(3).

The Plaintiff argued that they were entitled to solicitor and client costs with respect to both Appeals.

The Court held that it would not be appropriate to offset the Costs Awards because the corporate Defendant was only a party to one Appeal. The Court considered the circumstances leading up to the contempt finding and Rule 14.88 and awarded the Plaintiff its reasonable solicitor and client costs for the First Appeal. The Court held that it is generally reasonable to make the contemnor pay costs of contempt proceedings.

The Court also held that the corporate Defendant was entitled to its taxable costs under Column 5 of Schedule C of the Rules.