What are substantial indemnity costs for malicious prosecution?

There is no doubt that in some actions involving allegations of malicious prosecution, substantial indemnity costs are appropriate. There are few allegations potentially more damaging and prejudicial to the personal and professional reputation of Crown Attorneys or police officers than the allegation that they abused their office to maliciously prosecute an innocent accused. Such allegations challenge, in a fundamental way, their honesty and integrity. When such allegations are publically advanced by a plaintiff and then subsequently abandoned or found to be unsubstantiated and baseless, substantial indemnity costs may well be appropriate. Such serious allegations cannot properly be made based on mere conjecture and speculation, but must be based on a solid foundation of evidence supporting the cause of action. See: Hawley v. Bapoo (2006), 2006 CanLII 24333 (ON SC), 82 O.R. (3d) 382 (S.C.J.) at para. 21-31; Varied: 2007 ONCA 503 (CanLII), but affirmed on this issue, at para. 18.