Withdrawing several claims just before hearing unnecessarily lengthened proceeding

Civil Practice and Procedure – Costs – Scale and quantum of costs

Plaintiff corporation brought action, against defendant paralegal. Corporation claimed that paralegal had committed torts of inducing breach of contract, and interference with economic relations. Paralegal brought motion to strike claims. Motion was granted, with corporation being granted leave to deliver fresh as amended Statement of Claim. Paralegal claimed his costs of motion, on substantial indemnity basis. Costs submissions made by both parties. Costs awarded to paralegal in amount of $17,750, on partial indemnity basis. There was some justification for substantial indemnity costs being awarded. Paralegal was successful party. Conduct of corporation in withdrawing several claims just before hearing, unnecessarily lengthened proceeding. Issues raised by claim directly threatened paralegal's livelihood. However, even substantial indemnity award would not have exceeded amount of costs ultimately awarded by court. Circumstances of case justified significant costs, but on partial indemnity basis.

Crown Crest Financial Corp. v. Sabbah (2020), 2020 CarswellOnt 1869, 2020 ONSC 987, Perell J. (Ont. S.C.J.); additional reasons (2019), 2019 CarswellOnt 20217, 2019 ONSC 7114, Perell J. (Ont. S.C.J.).

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