Key Points:

• Background of Case:

  • HarbourEdge loaned approximately $2 million to Can*Sport for constructing a multi-use hockey facility in Bedford, NS.
  • The project failed to proceed; no construction occurred, tenants withdrew, and Can*Sport defaulted on the loan.
  • Can*Sport counterclaimed for $4.79 million in lost profits and other damages, alleging bad faith and contractual breaches by HarbourEdge.
  • The Court dismissed Can*Sport’s counterclaim entirely in a prior decision (2024 NSSC 98).

• Costs Framework:

  • Under Nova Scotia's Civil Procedure Rules, costs are determined primarily using Tariff A based on the "amount involved" and adjusted for trial length or specific factors (e.g., bad faith claims or unnecessary steps).
  • Judges can apply discretion to increase or decrease costs, ensuring substantial contribution to reasonable legal fees without full indemnification.

• Court’s Analysis:

  • HarbourEdge sought $336,829.91 based on the $4.79 million counterclaim and 7-day trial.
  • The Court found the counterclaim's "air of reality" limited; the true stakes lay in the $2.5 million loan balance and bad faith allegations.
  • Recognizing the legal complexity and reputational stakes for HarbourEdge, the Court applied discretion to set the "amount involved" at $2.5 million.
  • Costs were calculated at $176,500 (Tariff A + trial costs) and rounded up to $200,000 due to Can*Sport’s meritless bad faith and punitive damage claims.

• Conclusion:

  • Costs of $200,000, inclusive of disbursements, are awarded to HarbourEdge, payable within 30 days.