Is a successful litigant entitled to costs?

British Columbia, Canada


The following excerpt is from Sacks v. Canada Mortgage and Housing Corp., 2002 BCSC 1814 (CanLII):

The Court of Appeal in Bailey v. Victory (1995), 4 B.C.L.R. (3d) 389 at 392‑393, at paragraph 13, cited the general rule as follows: The general rule, as set out in Rule 57(9), is that costs follow the event. The successful litigant is entitled to costs as indemnification for the costs incurred in having been forced into litigation. The rules contain other provisions which show, and recent cases have indicated, that the power of the court to award costs is not limited to indemnification. In appropriate cases awards for costs can be made with a view to discouraging frivolous claims and defences, and unnecessary or abusive proceedings, to encourage prompt and early settlements, and, in appropriate cases, to penalize improper contact. But through the Rules and the decided cases runs one simple overriding principle which must not be lost sight of; that is that discretionary exceptions to the general rule must be made judicially.

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