What is the test for costs in a personal injury action?

Ontario, Canada


The following excerpt is from Carvalho v Carvalho, 2016 ONSC 1643 (CanLII):

The respondent father relies on Witherspoon v. Witherspoon [2015] ONSC 6378. In this case, the parties settled on the eve of trial. With respect to costs, the court stated that, “the attempt to argue costs entitlement and quantification through application of the normally applicable cost recovery rules, after the parties have reached a formal settlement of the substantive issues between them, without trial, is fundamentally misconceived and inappropriate.” (see par 42) The court also stated, “where parties make a settlement as between themselves, the court…should be very slow to make an award of costs against one of the parties, and unless there are compelling reasons to do so, costs in the circumstances of a settlement between the parties ought not to be awarded by the court.” (see par 44)

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