Background: The case involved a property dispute among family members. Plaintiffs, Earnest Adrian Harding and Sheila Gayle Ellen Harding, sued their son, James Ernest Harding, and his former wife, Mica Dione Harding, over two properties in Smithers, BC: the Telkwa Property and the Babine Lake Property. The Royal Bank of Canada was initially a defendant but was dismissed before trial.

Legal Arguments/Issues: The main issue was the ownership and cost entitlement of the properties. Mica counterclaimed to set aside the 2004 transfer of the Telkwa Property from James to the plaintiffs, alleging fraudulent conveyance and citing s. 97 of the Family Law Act. She also argued that the Limitation Act barred the plaintiffs' claims. James contended he should pay only 30% of the costs while Mica should pay 70%, claiming her legal challenges prolonged the trial.

Held: The court found Mica’s counterclaims did not significantly prolong the trial, as her defenses overlapped with other necessary issues. The court noted that the same number of witnesses and similar trial length would have been required regardless of her arguments. Furthermore, had Mica's defenses succeeded, James would have benefited equally. Therefore, the court ruled that both James and Mica should equally share the costs.

Costs/Damages Awarded: The application to apportion costs between James and Mica was dismissed. The plaintiffs were awarded their costs at Scale B, payable jointly and severally by James and Mica. The exact total amount of costs was not specified but was at the standard Scale B level.