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Full Indemnity for Legal Costs Awarded

Having been substantially successful at trial, the claimant sought full indemnity for legal costs based upon a clause in an assignment agreement which had been entered into by the parties.

The claimant was a real estate developer which arranged for the design, construction and sale of a residential project located in Burnaby, BC. An agreement of purchase and sale of a unit in the project was entered into but not completed (Wanson (Bristol) Development Ltd. v. Sahba,2017 BCSC 2140).  As well, an assignment, referred to as the “Assignment Agreement” was entered into by the claimant,  which provided an indemnity as described below:

8.         Indemnity of the Assignee

The Assignee will indemnify and save harmless the Assignor against and from any and all losses, costs and damages, (including legal fees and disbursements) which the Assignor may suffer or incur in connection with any non-observance by the Assignee of any of the provisions of this Assignment.

As it was the intention of the parties to the Assignment Agreement to have the assignor fully indemnified by the assignee for damages arising from the assignee’s failure to complete the transaction.  The assignor in this case incurred costs as a result of the assignee’s failure and therefore is entitled to full indemnity costs.

As a result the claimant was entitled to full indemnity costs, including legal fees and disbursements.

Posted by Personal Injury Lawyer Mr. Renn A. Holness, B.A. LL.B

Tags: contract, Costs, indemnity for costs, Rule 14-1(5) Costs Considerations

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