Unfair to punish respondents in costs without affording them opportunity to fully respond to allegations

Ontario civil | Civil Practice and Procedure | Costs | Particular orders as to costs

Applicants, deceased farm owner’s common law spouse K and corporations, claimed property interests in farm, animals, farm equipment, and farm vehicles based on ownership, beneficial interest or leasehold interest. K brought application against estate and B, deceased’s son from prior relationship (“respondents”), to enforce her property interests. Application judge found that balance of convenience favoured K continuing to operate farming business on interim basis, and restrained B from removing livestock, poultry, and livestock trailer from farm. Parties made submissions on costs. No order as to costs. It was not appropriate in circumstances to take into account alleged disposal of farm animals by respondents. While substantial indemnity costs may be awarded where there has been reprehensible, scandalous, or outrageous conduct by one of parties, conduct attracting such award is usually due to conduct of proceeding itself. If respondents committed conversion of applicants’ property or another wrongful act, applicants had remedy in claim for damages. It would be unfair to punish respondents in costs without affording them opportunity to fully respond to allegations. Success on applicants’ motion for interim injunction was divided relatively equally with respect to time spent. Parties ordered to bear their own costs of motion. 

HARRINGTON et al v. LANE et al (2018), 2018 CarswellOnt 8430, 2018 ONSC 3280, D.A. Broad J. (Ont. S.C.J.); additional reasons (2018), 2018 CarswellOnt 5011, 2018 ONSC 2059, D.A. Broad J. (Ont. S.C.J.).

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