Corporation R Inc. and taxpayer K entered into minutes of settlement of taxpayers’ employment action. Corporation concluded that its obligation under Income Tax Act was to withhold and remit to Canada Revenue Agency on account of full $1.5 million settlement amount. Corporation brought application for determination of rights, and taxpayer brought motion for summary judgment for minutes to be enforced. Application judge dismissed corporation’s application and partially granted taxpayer’s motion, and awarded taxpayer costs of $28,565. Court of Appeal allowed corporation’s appeal from judgment granting taxpayer’s motion for summary judgment but dismissed corporation’s appeal of dismissal of its application as moot. Corporation was awarded costs of appeal in amount of $15,000 inclusive of disbursements and taxes. Parties made submissions on costs of original application and motion. Corporation was awarded costs of $28,565 for court below. Corporation’s offer to settle was of no relevance since it was made to settle corporation’s own application, which was dismissed. Result on appeal, and as consequence, in court below, was mixed because appeal was allowed on basis of motion. Amount of $57,031 sought by corporation as partial indemnity costs was excessive. In court below, taxpayer, who had initially been successful on application and motion, received costs of $28,565. Reasonable amount of costs in court below was same amount as originally awarded to taxpayer.
RJM56 Investments Inc. v. Kurnik (2017), 2017 CarswellOnt 197, 2017 ONCA 19, E.A. Cronk J.A., Paul Rouleau J.A., and Grant Huscroft J.A. (Ont. C.A.); additional reasons (2016), 2016 CarswellOnt 17210, 2016 ONCA 821, Cronk J.A., Rouleau J.A., and Huscroft J.A. (Ont. C.A.).