How have the courts interpreted the costs rules in the context of litigation?

Costs also serve to involve the parties in an assessment of their cases and the likely outcome. That is, costs are more than a means of some indemnification for the successful party; they also serve to deter frivolous actions and can help promote settlement. In Catalyst Paper v. Companhia de Navegaçäo, 2009 BCCA 16 at para. 16, Hall J.A. held: It seems to me that the trend of recent authorities is to the effect that the costs rules should be utilized to have a winnowing function in the litigation process. The costs rules require litigants to make careful assessments of the strength or lack thereof of their cases at commencement and throughout the course of litigation. The rules should discourage the continuance of doubtful cases or defences. This of course imposes burdens on counsel to carefully consider the strengths and weaknesses of particular fact situations. Such considerations should, among other things, encourage reasonable settlements.