Can a court award special costs to an unsuccessful party?

As the defendant fairly points out, the awarding of special costs is within the court’s inherent jurisdiction. Although it is somewhat anomalous, courts have, in appropriate circumstances, and for various reasons, awarded costs to unsuccessful parties, or denied costs to successful parties. I know of no authority or principle that would preclude an award of special costs to an unsuccessful party in the appropriate circumstances, although the conduct deserving the court’s rebuke in that form is usually the conduct of the unsuccessful party (See the discussion in Gichuru v. York, 2012 BCSC 1385).