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Appeal - SOR - Costs. 786 Ummah Investments Corporation et al. v. Peel Standard Condominium Corporation 1021 et al.
In 786 Ummah Investments Corporation et al. v. Peel Standard Condominium Corporation 1021 et al. (Ont Divisional Ct, 2025) the Divisional Court considered the SOR applicable to an appeal of a costs award:[39] In Carroll v. McEwen, 2018 ONCA 902, the Court of Appeal stated, at para. 58:The legal principles that apply in a costs appeal are not in dispute. Considerable deference should be given to the trial judge's discretion in determining the entitlement, scale and quantum of a costs order: McNaughton Automotive Ltd. v. Co-operators General Insurance Co., 2008 ONCA 597, 95 O.R. (3d) 365 (Ont. C.A.), at para. 27. As a result, leave to appeal costs orders should be granted sparingly, only in obvious cases where there are strong grounds upon which the appellate court could find that the judge erred in exercising his discretion: Inter-Trust Mortgage Investment Corp. v. Robinson, 1999 CanLII 2724, at para. 12; Brad-Jay Investments Ltd. v. Szijjarto, 2006 CanLII 42636, at para. 21, leave to appeal to S.C.C. refused, [2007] S.C.C.A. No. 92 (S.C.C.); and Feinstein v. Freedman, 2014 ONCA 205, 119 O.R. (3d) 385 (Ont. C.A.), at para. 52. Even where leave has been granted, a costs order should not be set aside unless the trial judge made an error in principle or the order is plainly wrong: Hamilton v. Open Window Bakery Ltd. (2003), 2004 SCC 9, [2004] 1 S.C.R. 303 (S.C.C.), at para. 27. [40] More recently, in Baran v. Cranston, 2022 ONSC 6636, the Divisional Court stated at paras. 29 and 30:The Ontario Court of Appeal has instructed that leave to appeal a costs order should be granted only "in obvious cases where the party seeking leave convinces the court there are 'strong grounds upon which the appellate court could find that the judge erred in exercising his discretion'" (Brad-Jay Investments Limited v. Village Developments Limited, 2006 CanLII 42636 (ON CA) at para. 21; Levant v. DeMelle, 2022 ONCA 79 at para. 74).
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The test to be applied in a costs appeal is set out in Hamilton v. Open Window Bakery Ltd, 2004 SCC 9 at para. 27: an appellate court should not interfere with an award of costs unless there has been an error of principle or the costs award is plainly wrong.
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