Case Overview:
XTL Inc., a transportation and logistics company, contracted FPS Food Process Solutions Corporation, a manufacturer of industrial food processing equipment, to build a large freezer system valued at over $3 million. XTL paid $762,500 in advance but later failed to secure financing, halting the project. FPS claimed set-offs for expenses incurred.

Legal Issues:

1. Whether FPS’s conduct in misrepresenting the repurposing of freezer shelving components warranted sanctions.
2. Determining the appropriate costs awarded to XTL, given FPS’s misrepresentations.

Court's Findings:

• FPS repeatedly misrepresented that freezer shelving components, valued at approximately $180,000, were scrapped, when they were later repurposed.
• This misrepresentation, made in pleadings, affidavits, and discovery, significantly altered litigation and caused delays.
• The court rejected XTL’s request for special costs but awarded uplift costs at 1.5 times Scale B from February 1, 2021, to January 16, 2023, covering the period of misrepresentation.

Costs and Awards:

• FPS was ordered to pay uplift costs at 1.5 times Scale B for the specified period, with the exact amount to be assessed by the Registrar if needed.
• XTL was also awarded costs for the application at Scale B.

The court emphasized that FPS’s reckless conduct in misrepresenting material facts warranted rebuke, even though the litigation was not rendered wholly unnecessary.