In the case of Infor v. CentriLogic, dated June 5, 2023, the plaintiff, Infor Financial Inc, sought costs of $511,762.22 arising from a four-day trial. Meanwhile, the defendant, Centrilogic Inc. argued that the plaintiff's request was excessive and proposed a costs award of no greater than $225,000, including disbursements and HST.
The court ruled that the plaintiff was entitled to an award of $511,762.22, consisting of partial indemnity costs of $88,422.90 plus HST up to July 12, 2021, and substantial indemnity costs after that date. This substantial indemnity claim was based on a settlement offer the plaintiff had made on July 12, 2021, which the defendant had rejected. The judgment at trial favored the plaintiff more than the settlement offer, allowing for the substantial indemnity costs.
The defendant argued that the plaintiff's costs were disproportionate to the amount at issue, but the court disagreed, stating that costs could be significant in relation to damages sought and that proportionality should not be used to deny substantial indemnity costs when a party obtained a judgment superior to its settlement offer.
The defendant's argument for a reduced cost award in the interest of justice was rejected by the court, which maintained the substantial indemnity scale award for the plaintiff due to the defendant's intransigence during the litigation.
The court awarded the plaintiff its costs on a partial indemnity scale up to July 12, 2021, and on a substantial indemnity scale from that date forward, amounting to $511,762.22, inclusive of disbursements and HST.