Corporate lawyers frequently draft commercial agreements with specific terms regarding legal expenses. Many contracts provide for full legal costs in Ontario when legal proceedings occur. However, courts retain authority to review and enforce these provisions. Under the Courts of Justice Act, Ontario judges retain overall discretion regarding legal costs. Therefore, negotiated contract language does not automatically guarantee procedural cost awards.
Furthermore, courts must assess billed legal expenses for proportionality and reasonableness. In Bossé v. Mastercraft Group Inc., the Court of Appeal…
