Decision on Costs:
- The court previously dismissed Manirambona’s motion to set aside the default judgment for foreclosure.
- The Plaintiff, Pawan Gupta, sought substantial indemnity costs due to misconduct by the Defendant.
- The Defendant failed to file any cost submissions.
- Costs fixed at $28,000, including fees, disbursements, and taxes, payable immediately.
Key Reasons for Awarding Substantial Indemnity Costs:
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Misconduct by Manirambona:
- Intentional delay of legal proceedings for over 18 months, depriving Gupta of his entitlement under the judgment.
- False and self-serving allegations—the court rejected multiple assertions made by Manirambona.
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Rejection of a Reasonable Settlement Offer:
- Gupta had offered to settle by dismissing the motion with $5,000 in costs, which Manirambona refused.
- The refusal led to unnecessary litigation with little realistic chance of success.
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Legal Basis for Elevated Costs:
- Courts impose substantial indemnity costs in rare and exceptional cases to sanction misconduct (Hunt v. TD Securities Inc.).
- Costs should reflect a fair and reasonable amount rather than actual legal fees (Boucher v. Public Accountants Council).
Conclusion:
- The Defendant’s conduct warranted judicial rebuke.
- $28,000 in costs awarded to Gupta on a substantial indemnity basis, payable forthwith.
