What is the limitation of a plaintiff’s ability to avoid the imposition of substantial indemnity costs at trial by denying that the allegations in the statement of claim are false?

I do not believe that, on the record before me, I am in a position to determine whether or not the allegations in the statement of claim are false and that costs therefore should be awarded on a substantial indemnity scale. I am troubled by the fact that this limitation may well be the result of the plaintiff’s decision to abandon their motion before a more complete record was prepared. I also understand the force of the defendants’ argument that the plaintiff should not be permitted to make a virtue out of their non-cooperation. Finally, I recognize that a party should not be able to avoid the imposition of costs on a substantial indemnity scale simply by fictitiously asserting that the allegations will be maintained at trial. But in this case, unlike Yang v. Mao, supra, the plaintiff is continuing the action and insists that these allegations of impropriety will be considered by the trial judge. Therefore, it is clear that the trial judge will be in a much better position to determine whether or not these allegations are false and whether costs should be awarded on a substantial indemnity scale.