What is the impact of bad faith in determining the amount of costs in a personal injury action?

The general conduct of the parties is also a key factor in determining the amount of costs, even if their conduct falls short of bad faith. As Campbell J. highlighted in Parsons v. Parsons, 2002 CarswellOnt 2536 (S.C.J.): [W]hen the respondents have acted unreasonably, the applicants should not have to financially "pick-up" or absorb the result of those respondents' impulsive and punitive decisions. While the court recognizes that costs orders may "fan the fires", I interpret the rules as recognizing that there must be consequences for unreasonableness. There is an element of behaviour modification to a costs order in that it encourages a change in attitude from a "litigate with impunity" mindset.