Case Overview:

• Pierre Lamoureux (Plaintiff) filed an action against Low Murchison Radnoff LLP (Defendant) following the breakdown of a decade-long professional relationship.
• The court dismissed the plaintiff's claim after a trial lasting nearly three weeks.

Costs Dispute:

• Defendant sought costs of $222,969.68 on a substantial indemnity basis or $150,152.65 on a partial indemnity basis.
• Plaintiff opposed the costs but did not submit a detailed bill or challenge the defendant's billing practices.

Court's Decision on Costs:

• Costs were awarded on a partial indemnity basis, fixed at $150,152.65.
• Substantial indemnity costs were declined because:
  • The plaintiff's serious allegations, while unproven, were sincerely believed and had some basis.
  • The court emphasized that settlement offers should not be used to infer a lack of merit in a case, as this could discourage settlements, which are vital for judicial efficiency.

Reasoning for the Decision:

• Costs awards must reflect fairness and reasonableness, not just actual expenses incurred by the winning party.
• While the plaintiff’s allegations were not scandalous or outrageous to warrant higher costs, the defendant's conduct was not without flaws.

Key Considerations:

• Settlement offers are critical to justice and should not penalize the offering party.
• Emotional underpinnings of disputes can influence perceptions and actions but do not necessarily justify elevated cost awards.

Outcome:

• Defendant’s costs were fixed at the partial indemnity level, with payment due within 30 days.