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ARTICLE · 17 NOVEMBER 2017

The Full ‘Costs' Of Lying: When Full-Indemnity Costs Are Awarded

Blaney McMurtry LLP
Blaney McMurtry LLP
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It's not every day that an insurer is able to recover its full costs. But sometimes, when an opposing party lies and engages in unlawful conduct, it just might be your lucky day.

CanadaInsurance
Blaney McMurtry LLP
Blaney McMurtry LLP
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It's not every day that an insurer is able to recover its full costs. But sometimes, when an opposing party lies and engages in unlawful conduct, it just might be your lucky day.

That's what happened in Net Connect Installation Inc. v. Mobile Zone Inc.1: the defendants hid their money offshore, and fabricated evidence. The case involved an oral agreement between the parties for the sale and installation of cable packages in Ontario. The plaintiff claimed for the recovery of loaned money, breach of contract, and funds that the defendants had diverted to Pakistan. On a motion for summary judgment, the court found in favour of the plaintiff, and granted full-indemnity costs.  The Court of Appeal agreed and upheld the costs award.

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