2551965 Ontario Ltd. v. Warkentin

Case Background:

• The litigation involved a wrongful dismissal claim brought by the plaintiffs (2551965 Ontario Ltd. and Cabin Country Realty Ltd.) against Harold Warkentin. The defendant counterclaimed, but both the claim and counterclaim were dismissed in the main trial decision (2024 ONSC 4876).
• The case revolved around a non-compete covenant and related contractual disputes.

Trial Outcome:

• Both claims were dismissed, but the court considered cost submissions due to the behavior and offers made during the litigation.

Cost Submissions:

• Plaintiffs sought $204,299 plus disbursements as substantial indemnity costs.
• Defendant conceded responsibility for partial costs, proposing $40,000.

Court’s Analysis:

• The plaintiffs had made two reasonable Rule 49 offers to settle, which were not accepted by Mr. Warkentin.
• The court noted proportionality and fairness, deciding costs should reflect the plaintiffs' substantial trial preparation and reasonable conduct.

Costs Awarded:

• $60,000 as partial indemnity costs, reflecting fair compensation for the plaintiffs' lead counsel efforts.
• $12,857.12 for disbursements, considered reasonable despite higher accommodation expenses.

Final Decision:

• Total costs of $80,657.12 (inclusive of HST and disbursements) were awarded to the plaintiffs.