Renewable Power & Light Ltd v McCarthy Tetrault and others

Costs – Indemnity. The claimant had issued proceedings, to which the third defendant (GT) had issued a counterclaim by way of set off. The claimant discontinued its proceedings and it fell to the court to determine the matters on the counterclaim. The Chancery Division held that, on the true construction of the contractual documents that the parties had entered into, GT was entitled to an indemnity for its costs in defending the proceedings and bringing its counterclaim, provided that such costs were reasonable costs reasonably incurred.

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