Absent protocol, costs to be awarded on partial indemnity basis

COST

Absent protocol, costs to be awarded on partial indemnity basis

Applications of GTAA for aircraft seizures and detention orders for amounts owed by airline were allowed. Motions by lessors seeking declarations that none of airport authorities were entitled to seize or detain aircraft were dismissed. Under protocol negotiated by parties prior to hearing Airport Authorities and NAV Canada were entitled to be indemnified for payment of reasonable legal costs incurred with successful seizure applications subject to assessment. Protocol used phrase “reasonable legal costs, as assessed” which did not unequivocally express lessors would be liable for costs on substantial or full indemnity scale. Absent protocol costs were to be awarded on partial indemnity basis. Costs were fixed on partial indemnity basis in amount of $277,925 inclusive of disbursements and HST.

Skyservice Airlines Inc. (Re) (Oct. 27, 2011, Ont. S.C.J. (Comm. List), Morawetz J., File No. CV-10-8647-00CL) 208 A.C.W.S. (3d) 663 (7 pp.).