Crocs Canada, Inc. v. Double Diamond Distribution Ltd

Crocs Canada, Inc. v. Double Diamond Distribution Ltd

Court exercised its discretion under the Federal Courts Rules to award lump sum costs above Tariff B due to Defendant's dilatory and non-compliant conduct. The Court fixed recovery at 25% of Plaintiffs' reasonably incurred legal fees ($131,977.56) plus reasonable disbursements of $100,883.59, reduced certain overhead disbursements ($5,415.54) as unreasonable, and awarded a total lump sum of $232,861.15 payable by the Defendant, with post-judgment interest at 5% per year.

Citation
2023 FC 184
Parties
Plaintiff (defendant by Counterclaim): Crocs Canada, Inc.; Plaintiff (defendant by Counterclaim): Crocs Inc.; Defendant (plaintiff by Counterclaim): Double Diamond Distribution Ltd
Court
Federal Court
Jurisdiction
Canada
Judgment Date
8 February 2023
Procedural Posture
Industrial Design / Intellectual Property Dispute With Counterclaim (trial Concluded) / Costs Assessment and Costs Order Following Judgment
Outcome
Costs awarded to Plaintiffs (Crocs Canada, Inc. and Crocs Inc.) in a lump sum of $232,861.15, payable by Defendant (Double Diamond Distribution Ltd); post-judgment interest at 5% per year applies.
Legal Topics
Costs Award, Lump Sum Costs, Disbursements, Expert Fees, Party Conduct
Source Language
English
Intellectual Property Industrial Design Civil Procedure Costs Costs Award Lump Sum Costs Disbursements Expert Fees +1 more

Case Brief

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Parties

Crocs Canada, Inc.

Plaintiff (defendant by Counterclaim)

Crocs Inc.

Plaintiff (defendant by Counterclaim)

Double Diamond Distribution Ltd

Defendant (plaintiff by Counterclaim)

Procedural Posture

Industrial Design / Intellectual Property Dispute With Counterclaim (trial Concluded) / Costs Assessment and Costs Order Following Judgment

Legal Issues

  1. 1 Whether the successful party is entitled to costs
  2. 2 Appropriate quantum of costs (Tariff B vs lump sum)
  3. 3 Recoverability and reasonableness of disbursements and expert fees

Ratio Decidendi

Court exercised its discretion under the Federal Courts Rules to award lump sum costs above Tariff B due to Defendant's dilatory and non-compliant conduct. The Court fixed recovery at 25% of Plaintiffs' reasonably incurred legal fees ($131,977.56) plus reasonable disbursements of $100,883.59, reduced certain overhead disbursements ($5,415.54) as unreasonable, and awarded a total lump sum of $232,861.15 payable by the Defendant, with post-judgment interest at 5% per year.

Court Disposition

Costs awarded to Plaintiffs (Crocs Canada, Inc. and Crocs Inc.) in a lump sum of $232,861.15, payable by Defendant (Double Diamond Distribution Ltd); post-judgment interest at 5% per year applies.

Orders

  • Defendant shall pay to the Plaintiffs lump sum costs in the amount of $232,861.15, inclusive of reasonable legal fees and disbursements, and applicable interest.
  • Post-judgment interest at the rate of 5% per year applies on all amounts owed by the Defendant to the Plaintiffs pursuant to this Costs Order.