13 Jun 2023
Sir Corp. v Aviva Insurance Company
In the case of Sir Corp. v. Aviva, dated June 16, 2023, the respondent, Aviva Insurance Company of Canada, had sought its costs of the application as per an agreement entered into before the proceedings, which stated that the successful party on the application would be entitled to costs of $100,000.00, all-inclusive. Subsequently, the court considered the agreement between the parties, which capped the costs at $100,000.00, and found that it was enforceable and not breached.
The application had occupied five days of hearing time and had involved extensive materials, including hundreds of pages of Application Records, Factums, Compendiums, and Books of Authorities. Both parties had presented their positions on the matter. The applicants, SIR Corp, US S.I.R., LLC, and/or Subsidiaries and/or Franchises and/or Affiliated and/or Associated Firms and/or other interests as directed by SIR Corp., had argued that the cost agreement should not be enforced because of the additional costs incurred by them after the agreement was made. However, the court upheld the enforceability of the agreement, stating that the applicants had agreed to cap costs at $100,000.00.
In assessing the costs, the court had considered the principle of proportionality and the reasonableness of the claimed amounts. The respondent's costs were awarded on a partial indemnity scale, and the court found the claimed amount to be reasonable and in line with the reasonable expectations of the parties.
As a result, the court had ordered the applicants to pay the respondent costs in the amount of $100,000.00 for the application and $8,136.00 for the preparation of the costs submissions.