In Pohl v. Hudson’s Bay Company, 2022 ONSC 5598, Justice Centa determined that costs for the winning plaintiff who beat his own Rule 49 offer was to be $35,559 plus disbursements where his full indemnity costs were $42,425.
I found this following passage most interesting, where the Judge commeneds on the difference between how large firms bill and how small firms bill
“HBC submits that Mr. Pohl’s “higher than expected costs simply reflect a failure to appropriately delegate work.” It is true that all of the work done on Mr. Pohl’s file was done by one lawyer. This contrasts with the defendant who had four lawyers, four students, and a law clerk work on the file at various times. But there are many ways to organize legal work efficiently and effectively. Looking at the work done by Mr. Pohl’s counsel, it appears to have been done very efficiently, even taking into account his higher hourly rate, which it itself appropriate for a lawyer with 43 years of experience. I do not accept that the differences in how these files were staffed should mean that Mr. Pohln should receive less on a blended substantial indemnity / partial indemnity scale than HBC would have sought on a partial indemnity basis if it was successful.”
My Comments :
Ontario judges have been awarding significant cost awards in employment cases even where the hearing only takes one of two days. This matter can often play out in a mediation where there is a relatively small difference between the parties final offers. This is especially relevant in a simple notice case, where in most cases the Defendant has only paid out the ESA and the parties are only arguing about the length of the notice period. In those cases, the defendant will lose at trial, the only issue will be by how much. Since a loss almost always carries an adverse cost award ( unless the Defendants beats its own Rule 49 offer) , the cost award can easily exceed the difference between their last offers. As many Plaintiffs are on a contingency arrangement, going to trial carries less risk as the extra work is done by the lawyer and does not affect the Plaintiff’s recovery.
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