How has 9-1(6)(c) of the Rules on litigation costs been interpreted in the context of insurance coverage?
British Columbia, Canada
The following excerpt is from P.S.D. Enterprises Ltd. v. New Westminster (City), 2011 BCSC 1646 (CanLII):
Until recently, the funding of litigation costs by an insurer, as a matter of the relative financial circumstances of the parties under 9-1(6)(c), was not a proper consideration in relation to costs. This is no longer the case. In Smith v. Tedford, 2010 BCCA 302, Lowry J.A. stated: 19. While I recognize arguments over the implications of a defendant's insurance coverage being considered in relation to an award of costs may go back and forth, like the judge I consider precluding such from consideration renders an assessment of the parties' relative financial circumstances, at least in a case of this kind, very artificial indeed.
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