Costs on Dismissal of Proceedings: Section 137.1(7)

AuthorDavid A. Potts; Erin Stoik
Pages311-323
311
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Costs on Dismissal of Proceedings: Section 137.1(7)
LEGISLATION
The sections on costs are a def‌ining and pivotal feature of this legislation.
The legislation may be summarized from the defendants’ perspective as:
“heads, I win” (s 137.1(7)), “tails, you lose” (s 137.1(8)).
Courts of Justice Act, RSO 1990, c C.43:
Costs on Dismissal
137.1 (7) If a judge dismisses a proceeding under this section, the moving party
is entitled to costs on the motion and in the proceeding on a full indemnity
basis, unless the judge determines that such an award is not appropriate in
the circumstances.
PURPOSE OF SECTION .
General Purpose
Ontario Court of Appeal
In Fortress Real Developments Inc v Rabidoux, 2018 ONCA 686 at paras 60–64,
the Ontario Court of Appeal made the following comments on the general
purpose of section 137.1(7):
[60] Section 137.1(7) does two things. First, it creates a starting point for the
motion judge’s determination of costs when the defendant (moving party)
has been successful in dismissing the action on a s. 137.1 motion. Section
137.1(7) directs that the motion judge start from the premise that the defend-
ant should receive costs on both the motion and in the proceeding on a full
indemnity basis.

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