June 10, 20.26 – Costs: Partial or Full Recovery?

“There is no question that the applicant is entitled to her costs.  The only question is whether they should be allowed on a full recovery or a partial recovery basis.

Rule 24(10) provides as follows:

(10) If a party has acted in bad faith, the court shall decide costs on a full recovery basis and shall order the party to pay them immediately.

In Scalia v. Scalia, 2015 ONCA 492 at para. 68, Epstein J.A., speaking for the court, defined the meaning of “bad faith”:

… The legal test for bad faith in the family law context, as set out in S. (C.) v. S. (M.) (2007), 2007 CanLII 20279 (ON SC), 38 R.F.L. (6th) 315 (Ont. S.C.J.), at para. 17, aff’d 2010 ONCA 196, 262 O.A.C. 225 (Ont. C.A.), is that the impugned behaviour must be shown to be carried out with “intent to inflict financial or emotional harm on the other party or persons affected by the behaviour, to conceal information relevant to the issues or to deceive the other party or the court.” In short, the essential components are intention to inflict harm or deceive.”

          Scott v. Scott, 2025 ONSC 3456 (CanLII) at 10-12

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