The costs judgment in Guiliani v. Region of
Halton (2011 ONSC 5119), handed down August 31st, followed a
trial in February 2010 concerning injuries incurred in a motor
vehicle accident. The damages awarded were $375,000, however the
costs and disbursements incurred by the Plaintiff's counsel
totaled approximately $788,000. Murray J. was critical of the
amount of costs, however of particular note are the judge's
consideration of a loan which the Plaintiff had obtained from
Lexfund Inc. to finance disbursements.
The loan was taken out on November 15, 2009, for $150,000.
Repayment was contingent on success at trial. The interest rate was
3.5% compounded monthly (an effective annual rate in the region of
50%). There was an additional underwriting fee of 7.5% on the
amount advanced that was added to the principal debt. Also,
(despite the proximity to trial) the agreement provided for a
penalty if the loan was repaid within 24 months from drawdown.
According to the
