Plaintiff Loses 8 Day Trial and Pays $120,000 in Costs to Defendant :
In Park v. Costco Wholesale Canada Ltd.( 2023 ONSC 18850 ) Justice Robyn M. Ryan Bell awarded Costco costs of $120,000 in regards to a 8 day trial with written closing arguments .
This was an action from 2015 when there was no restriction on costs.
Had this action been commenced today and had the Plaintiff limited his claim to under $200,000 ,and therefore proceeded as a Simplified Procedure under Rule 76, the maximum cost award would have been $50,000 and up to $25,000 for disbursements. In most wrongful dismissal actions, disbursements are minimal.
Moreover, under Rule 76.13 (3) if the Plaintiff starts an ordinary action but recovers less than $200,000 they run a real risk that they get no cost award at all.
The lesson to plaintiffs is clear.
Unless you have a really good shot at getting an award in excess of $200,000 , do not use the ordinary procedure but rather use the Simplified Procedure. So if your notice claim alone is worth less than $200,000 but you are tempted to add a punitive damage claim for $500,000 to scare the Defendant, think twice about it.
This was an action from 2015 when there was no restriction on costs.
Had this action been commenced today and had the Plaintiff limited his claim to under $200,000 ,and therefore proceeded as a Simplified Procedure under Rule 76, the maximum cost award would have been $50,000 and up to $25,000 for disbursements. In most wrongful dismissal actions, disbursements are minimal.
Moreover, under Rule 76.13 (3) if the Plaintiff starts an ordinary action but recovers less than $200,000 they run a real risk that they get no cost award at all.
The lesson to plaintiffs is clear.
Unless you have a really good shot at getting an award in excess of $200,000 , do not use the ordinary procedure but rather use the Simplified Procedure. So if your notice claim alone is worth less than $200,000 but you are tempted to add a punitive damage claim for $500,000 to scare the Defendant, think twice about it.
If you like a copy of this case, email me at barry@barryfisher.ca
If you would like to book a mediation or an arbitration, go to www.barryfisher.ca