Potentially, yes. If you succeed in a real estate dispute, an Ontario court may order the unsuccessful party to pay part of your legal costs and reasonable litigation disbursements. Winning does not, however, automatically mean recovering all lawyer fees, expert fees, or other expenses.
How do Ontario courts decide who pays legal costs?
Under section 131 of the Courts of Justice Act, costs are within the court’s discretion. Rule 57 of the Rules of Civil Procedure identifies factors that may affect how that discretion is exercised.
The result of the case is important, but it is not the only consideration. The court may also consider the complexity and importance of the issues, the amount claimed and recovered, the parties’ conduct, the work reasonably required, whether unnecessary steps were taken, and written settlement offers.
A costs award may include an amount toward lawyer fees and appropriate litigation disbursements. In a real estate case, those disbursements may include expenses associated with surveyors, engineers, appraisers, accountants, or other experts where their involvement was reasonably required.
For the broader cost picture, see What are the legal costs involved in real estate litigation?.
What can different costs outcomes look like?
Scenario A — Clear success. A party succeeds on the principal issues and has conducted the litigation reasonably and proportionately. The court may award that party a meaningful contribution toward its legal fees and appropriate disbursements, although not necessarily the full amount actually spent.
Scenario B — Mixed or partial success. Each side succeeds on different issues, or the successful party recovers substantially less than it claimed. The court may reduce the costs award, divide costs between stages or issues, or make another order reflecting the mixed result.
Scenario C — Settlement offer affects costs. A party makes a formal Rule 49 offer to settle, the case proceeds to judgment, and the judgment compares favourably with the offer under Rule 49.10. The offer may materially affect the costs consequences for the relevant stages of the proceeding, including the possible application of partial indemnity or substantial indemnity costs.
Can settlement strategy affect costs even if the case goes to judgment?
Yes. Settlement conduct can remain relevant even where no settlement is ultimately reached.
A reasonable formal offer may affect the eventual costs order, while unnecessary procedural steps or unreasonable litigation conduct can work against a party when costs are determined.
Settlement can also remain available after litigation begins. See Can a real estate dispute be settled outside court in Ontario?.
How does ME Law approach costs recovery?
ME Law considers potential costs consequences throughout the litigation rather than only after judgment. This includes assessing whether proposed steps are proportionate, documenting significant litigation expenditures, evaluating settlement offers, and considering how procedural conduct may affect a later costs determination.
The objective is to assess the economics of the dispute realistically. A potential costs award can materially reduce the successful party’s net litigation expense, but it should generally be treated as possible partial recovery rather than guaranteed reimbursement.
For a detailed overview of Ontario costs principles and strategy, see Costs Awards & Cost Recovery.
For representation in property-related disputes, see Real Estate Litigation.
Contact ME Law to discuss potential costs recovery and litigation strategy for a real estate dispute in Ontario.