A&H Asset Auctions Inc. v. ABC Corporation et al

9 Feb 2024

· Background:
The case involves motions brought under Section 137.1 of the Courts of Justice Act (CJA) by the Crown Defendants (including Canada Revenue Agency and other governmental bodies) and BBB to dismiss A&H's claims.
Section 137.1 is designed to prevent "Strategic Lawsuits Against Public Participation" (SLAPPs).
· Key Legal Points:
Costs on Motions: The Crown Defendants and BBB sought costs on a full indemnity basis after their motions to dismiss were granted.
Presumptive Costs: Section 137.1(7) of the CJA typically entitles successful defendants to full indemnity costs unless deemed inappropriate.
· Court's Decision on Costs:
Crown Defendants: Awarded partial indemnity costs of $150,416, instead of the full indemnity costs claimed ($271,078.32). The court found the claim of full indemnity costs excessive and noted the lack of compelling evidence that A&H's conduct warranted such an award.
BBB: Similarly awarded partial indemnity costs of $87,122.55. The court did not find sufficient justification to deviate from a partial indemnity scale.
· Rationale:
The court considered the proportionality of the costs in relation to the nature and complexity of the issues raised.
It emphasized fairness and reasonableness, guided by relevant case law and the principle that costs should deter frivolous litigation without imposing undue hardship on the parties.