ICBC's Refusal To Negotiate Without Litigation Triggers Costs Award
Reasons for judgement were released last week by the BC Court of Appeal ordering ICBC to pay costs after the settlement of a matter following trial.
In last week’s case (Krohn v. Weidner) the Plaintiff was injured in a collision and sued for damages. Following trial the Plaintiff ” immediately identified some areas of concern” and tried discussing these with ICBC. ICBC refused to address these issues stating that “no discussions concerning the amount of the judgment without an appeal first being filed.”
The Plaintiff appealed and the parties eventually settled the outstanding issues. The Plaintiff sought costs but ICBC refused to agree to these arguing each party should bear their own costs of the appeal. The BC Court of Appeal ultimately ordered that ICBC bear the costs of the appeal and in reaching this conclusion provided the following reasons:
 The appellant seeks costs of the appeal. The respondent, on the costs question, says that this is a case for an order that each party bear their own costs, consistent with Olney v. Rainville, 2010 BCCA 155, because this is a case, says the respondent, of divided success.
 From what we have been told, it is apparent that the only route for the appellant to recovery of the undisputed disbursements as special damages was by pursuing this appeal. Accordingly, in our view, this is not a case that justifies departing from this Court’s usual rule that the party successful on an appeal recover his or her costs.