In what circumstances will a defendant be required to pay special costs for failing to prove a prima facie case of fraud?
British Columbia, Canada
The following excerpt is from SeaQuest (1993) Adventurecraft Inc. v. Gray Line of Victoria Ltd., 2008 BCSC 1219 (CanLII):
In Ip v. Insurance Corp. of British Columbia (1994), 89 B.C.L.R. (2d) 251 (S.C.) the court held that the defendant’s failure to raise even a prima facie case of fraud resulted in an order for special costs, stating at para. 8: An allegation of fraud, wilful misstatements, or other such claims made against a person casts a serious pall over his or her reputation in the community. Very careful consideration must be given by the defendant before making such serious allegations.
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