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ARTICLE · 22 APRIL 2020

Unproven Allegations Of Fraud And Increased Costs

Norton Rose Fulbright Canada LLP
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In Roussy v Savage, the British Columbia Supreme Court dismissed the plaintiff's claims of fraud and breach of fiduciary duty. In considering costs, the defendant sought increased costs.

CanadaLitigation, Mediation & Arbitration
Norton Rose Fulbright Canada LLP
Norton Rose Fulbright Canada LLP
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In Roussy v Savage, the British Columbia Supreme Court dismissed the plaintiff's claims of fraud and breach of fiduciary duty. In considering costs, the defendant sought increased costs. The law in Canada is consistent in this matter: where a plaintiff alleges a defendant has engaged in dishonest conduct (such as fraud), the court may order increased costs against the plaintiff when those claims are not proven. However, the result of increased costs in favour of the defendant is not automatic, and the court will carefully analyze the particular circumstances, including the conduct of both the plaintiff and the defendant.

The Roussy v Savage decision to deny increased costs on the basis of fraud is noteworthy, not because of its consideration of the law, but on its factual application of that law. As is the ordinary case, the court assessed the plaintiff's knowledge of any potential dishonest conduct at each step of the litigation, to determine whether the plaintiff's

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