What is the test for assessing costs on a partial indemnity or substantial indemnity basis?

Prince Edward Island, Canada


The following excerpt is from MacPherson v. Ellis, 2005 PESCAD 19 (CanLII):

Therefore, the amount of costs to be paid by an unsuccessful party, applying either scale, is arrived at by considering all these factors, including the bill of costs submitted by counsel for the successful party. The objective is not to pronounce on the legitimacy of the fees that the solicitor for the successful party may charge his or her client but rather to determine within the context of the trial, application, motion or appeal the amount the unsuccessful party should contribute toward the costs of the successful party. This applies when assessing costs on either a partial indemnity or substantial indemnity basis. In addressing the issue in a case where costs were being assessed on a party and party basis (now partial indemnity), Wright J. expressed it this way at paragraph 12 and part of paragraph 13 in Lac Des Milles Lac Indian Band v. Canada (Attorney General):

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