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Costs - Substantial Indemnity Basis

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  • Costs - Substantial Indemnity Basis

    Hello, does anyone know what the definition for this actually means. Point by point? I understand that it means a percentage of the costs are to be paid based on a costs submission to a judge? I am hoping to be able to break it down for an offer to settle. Thanks,

  • #2
    You would need to check the Family Law Rules first to find the rule respecting offers to settle. The rule will set out the criteria respecting the offer to settle and its acceptance.

    Let's assume you make a reasonable offer to settle. If you satisfy the criteria set out in the rule and you obtain a judgement that is better than, or as good as the offer, you will be entitled to costs on a partial indemnity basis to the date the offer was served and substantial indemnity costs from that date onward.

    For example, if you make an offer on May 1st, but the offer is rejected and you have to lolly gag through the court system, you will be entitled to costs on a partial indemnity basis for all costs incurred up to May 1st; all costs thereafter will be substantially indemnified.

    Substantial does not necessarily mean full indemnification; that is at the discretion of the judge. However, the implication of not accepting a 'good' offer is higher costs because refusal of the offer resulted in an unnecessary trial.

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    • #3
      Please see the table here: Costs Grid Consultation Paper

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      • #4
        Originally posted by OrleansLawyer View Post
        Please see the table here: Costs Grid Consultation Paper
        Jeebus!! That is helpful!! Thanks so much!!!

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        • #5
          Originally posted by Mess View Post
          Jeebus!! That is helpful!! Thanks so much!!!
          I second and third that!!!

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          • #6
            Please bear in mind:
            In the absence of a cost grid made to apply to a particular judicial region, the following cost grid shall apply.
            You may have a local cost grid.

            An interesting article discussing costs: http://www.shillingtons.ca/pdfs/MLA-Paper-Apr-23-09.pdf

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