Background: Abbasali Shapour Hosseini and Abo Taheri were business partners and directors of Denna Homes Corp. and Denna Marketing Corp. Taheri filed a counterclaim in a Federal Court trademark action regarding the "DENNA" trademark. In response, Hosseini filed a petition to remove Taheri as a director, citing shareholder oppression, and sought leave to defend the Denna Companies against Taheri's counterclaim. Taheri's late discontinuance of his counterclaim surprised Hosseini, prompting him to seek costs for unnecessary preparation.

Legal Arguments/Issues: Hosseini argued that Taheri's sudden change in litigation position, after indicating he would not discontinue his counterclaim, imposed unnecessary costs on him. He sought costs thrown away for preparation between May 21 and May 27, 2024. Taheri countered that his discontinuance did not merit special costs and argued that the petition lacked merit from the start.

Held: The court ruled that Taheri's late decision to discontinue the counterclaim did not constitute reprehensible conduct but did result in unnecessary preparation for the hearing. The court found that Hosseini was entitled to costs thrown away for the specified preparation period and for the hearing itself. However, special costs were not awarded, as the conduct did not meet the threshold for reprehensibility.

Costs/Damages Awarded: Hosseini was awarded costs at Scale B for preparation from May 21 to May 27, 2024, and for the hearing before the judge. If the parties could not agree on the quantum of costs, they would appear before the Registrar for assessment. Financial terms were not specified.