What is the legal test for a successful party to recover costs from the successful party?

In terms of costs, the normal rule as encapsulated in Rule 14-1(9) is that the successful party is entitled to recover its costs, unless the court orders otherwise. In deciding whether to depart from that rule, reference is often made to the decision of Mr. Justice Bouck in Fotheringham v. Fotheringham, 2001 BCSC 1321, where he set out a four part inquiry (at para. 46): 1. First, by focussing on the “matters in dispute” at the trial. These may or may not include “issues” explicitly mentioned in the pleadings. 2. Second, by assessing the weight or importance of those “matters” to the parties. 3. Third, by doing a global determination with respect to all the matters in dispute and determining which party “substantially succeeded,” overall and therefore won the event. 4. Fourth, where one party “substantially succeeded,” a consideration of whether there are reasons to “otherwise order” that the winning party be deprived of his or her costs and each side bear their own costs.