What is the test for awarding costs in a claim?

Ontario, Canada


The following excerpt is from Demers Holdings Inc. v. London (South) Purchaseco Inc. (Travelodge London South), 2009 CanLII 30963 (ON SC):

The overriding principle behind awarding costs is that of indemnity: see Bell Canada v. Consumers’ Assn’ of Canada, 1986 CanLII 49 (SCC), [1986] 1 S.C.R. 190, at p. 207: ``…‘costs’ must carry the general connotation of being for the purpose of indemnification or compensation”.

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