Bow Valley Husky (Bermuda) Ltd. v. Saint John Shipbuilding Ltd.

In Admiralty Practice, Costs and Security for Costs on (Updated )

This was an application to determine the costs to be awarded the successful Defendant. The case is important because it illustrates how significant a cost award can be in a difficult and complex case. The action arose out of a fire on an oil rig. The trial of the action took 53 days and was followed by an appeal to the Newfoundland Court of Appeal and a further appeal to the Supreme Court of Canada. The case was a difficult and complex one. There were 26 applications and 13 pre-trial conferences. The successful Defendant asked for lump sum costs in excess of $3 million. The Plaintiff argued that the costs should be in the amount of approximately $500,000.00. The court ultimately awarded the Defendant $1.45 million. (Note: This award was not enhanced as a result of any double costs or enhanced costs rule based on a settlement offer.)