Initial Judgment: Serinus was awarded $97,012.50 and SysGen was awarded $53,137.89 on their counterclaim, resulting in a net amount of $43,874.61 owing to Serinus after set-off, plus pre- and post-judgment interest.
Legal Costs Dispute: Serinus claimed $593,167.44 in legal costs and SysGen claimed $211,182.
Positions of the Parties
Serinus:
Requested recovery of 47.45% of its actual costs and 10.8% for SysGen based on apportionment of costs.
SysGen:
Argued for each party to bear its own costs, using Schedule C as a benchmark.
Legal Principles
Rule 10.29: Presumptive entitlement to costs for the successful party.
Rule 10.31: Discretion in awarding costs considering reasonableness and properness.
Rule 10.33: Factors considered for costs awards include result, amount claimed and recovered, importance, complexity, conduct, and offers of settlement.
Court's Analysis
Result and Degree of Success:
Both parties had partial success, with Serinus achieving a higher net judgment but SysGen successfully defending against significant claims.
Importance of Issues:
Initially critical but later deemed a relatively minor commercial dispute.
Complexity:
Moderate complexity.
Apportionment of Liability:
Both parties bore some responsibility for protracting the litigation.
Conduct:
Both parties had unreasonable and entrenched positions.
Overlap:
Significant overlap in issues between the claim and counterclaim.
Conclusion
Costs Award: Each party to bear the costs of their respective claims with set-off against each other.
Allocation: 60% of costs to Serinus’ claim and 40% to SysGen’s counterclaim.
Final Directions
Resolution Attempt: Parties to attempt cost resolution again based on the court's guidance.
