Is a losing plaintiff who made unfounded allegations of fraud and dishonesty seriously prejudicial to the character or reputation of the City or its employees liable to substantial indemnity costs?
Ontario, Canada
The following excerpt is from Upchurch v. Oshawa (City), 2014 ONCA 425 (CanLII):
The appellants’ conduct of the litigation did not reach the levels described in Di Battista v. Wawanesa Mutual Insurance Company, 2005 CanLII 41985 (ON SC), [2005] 78 O.R. (3d) 445, where a losing plaintiff who made unfounded allegations of fraud and dishonesty seriously prejudicial to the character or reputation of the City or its employees was ordered to pay costs on a substantial indemnity basis. Here the refusal to follow counsel’s advice to settle the case and the pursuit of claims for aggravated and punitive damages do not by themselves justify costs on a substantial indemnity basis.
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