Costly Behaviour
2045978 Ontario Inc., c.o.b. Chaps the Original v. Chaps Aldershot Inc. c.o.b. Lezley’s Chaps and Kevin Saunders 2009 FC 981 (Zinn, J.).

September 30, 2009

Laurent Massam for the Plaintiff, Chaps the Original
Chris Argiropoulos for the Defendants, Lezley’s Chaps and Kevin Saunders

The Plaintiff sought increased costs, claiming that it recovered more on a motion for summary judgment than its offer to settle and that the Defendants’ actions frustrated the prosecution of the action.  The Plaintiff claimed approximately $50,000, which was made up of half its billed costs, its disbursements and two previous costs awards.

Mr. Justice Zinn found that the Plaintiff recovered more than it would have obtained from its offer to settle and that during discovery, the corporate Defendant admitted all of the elements of the action and should not have persisted with its defence.  The personal Defendant’s defence was tenuous.

However, this egregious behaviour did not meet the standard justifying an award of solicitor-client costs.

The Plaintiff’s party and party costs, calculated at the upper end of Column V of Tariff B, including a doubling of costs subsequent to the settlement offer, amounted to $22,330.  Mr. Justice Zinn ordered the Defendants, jointly and severally, to pay $20,000 forthwith.

By:  Greg Moore, Goudreau Gage Dubuc LLP