Can a plaintiff escape the adverse costs consequences of an unsuccessful claim?
Ontario, Canada
The following excerpt is from Mundinger v. Ashton, 2020 ONSC 2024 (CanLII):
Permitting a plaintiff to escape the costs consequences of an unsuccessful claim by limiting the unsuccessful plaintiff’s costs exposure to the amount of the plaintiff’s or law firm’s adverse costs insurance coverage would undermine the purpose of costs to promote settlement. It would permit a plaintiff to ignore reasonable offers to settle and take their chance at trial without risk of adverse costs consequences: Clubine v. Paniagua, 2018 BCSC 1076, at para. 28.
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