AGI Suretrack, LLC v. Farmers Edge Inc.

AGI Suretrack, LLC v. Farmers Edge Inc.

The Court exercised its Rule 400 discretion to award lump sum costs because Tariff B was inadequate to provide reasonable indemnification given the case complexity and stakes; it adopted a 33% starting point for recoverable fees to April 12, 2021 and doubled that rate (66%) thereafter pursuant to a qualifying Rule 420 offer dated April 12, 2021; it adjusted recoverable fees downward for partially wasted pre‑adjournment trial work and disallowed only limited disbursements, resulting in fees of $2,500,000 and disbursements of $1,777,435 (total $4,277,435), offset by interlocutory costs of $28,320 and applied posted security, with post-judgment interest at 4.25% and a 30‑day grace period.

Citation
2024 FC 1887
Parties
Plaintiff / Defendant by Counterclaim: AGI Suretrack, LLC; Defendant / Plaintiff by Counterclaim: Farmers Edge Inc.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
26 November 2024
Procedural Posture
Patent Infringement and Validity (counterclaim) / Post Judgment Costs Determination (costs Hearing Following Trial)
Outcome
AGI Suretrack, LLC shall pay Farmers Edge Inc. net and inclusive costs in the amount of $4,249,115; security for costs posted by AGI ($120,000 plus interest) to be paid to Farmers Edge in partial payment; security for costs posted by Farmers Edge ($72,300 plus interest) to be released to Farmers Edge; post-judgment...
Legal Topics
Costs Awards, Lump Sum Costs, Rule 420 Offers, Disbursements, Security for Costs, Settlement Privilege, Post Judgment Interest, Costs Thrown Away
Source Language
English
Intellectual Property Patent Law Civil Procedure Costs Law Costs Awards Lump Sum Costs Rule 420 Offers Disbursements +4 more

Case Brief

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Parties

AGI Suretrack, LLC

Plaintiff / Defendant by Counterclaim

Farmers Edge Inc.

Defendant / Plaintiff by Counterclaim

Procedural Posture

Patent Infringement and Validity (counterclaim) / Post Judgment Costs Determination (costs Hearing Following Trial)

Legal Issues

  1. 1 Whether a lump sum costs award is appropriate instead of Tariff B assessment
  2. 2 What percentage of recoverable fees should form the lump sum
  3. 3 Whether Farmers Edge’s April 12, 2021 offer qualifies under Rule 420 and triggers doubling of costs

Ratio Decidendi

The Court exercised its Rule 400 discretion to award lump sum costs because Tariff B was inadequate to provide reasonable indemnification given the case complexity and stakes; it adopted a 33% starting point for recoverable fees to April 12, 2021 and doubled that rate (66%) thereafter pursuant to a qualifying Rule 420 offer dated April 12, 2021; it adjusted recoverable fees downward for partially wasted pre‑adjournment trial work and disallowed only limited disbursements, resulting in fees of $2,500,000 and disbursements of $1,777,435 (total $4,277,435), offset by interlocutory costs of $28,320 and applied posted security, with post-judgment interest at 4.25% and a 30‑day grace period.

Court Disposition

AGI Suretrack, LLC shall pay Farmers Edge Inc. net and inclusive costs in the amount of $4,249,115; security for costs posted by AGI ($120,000 plus interest) to be paid to Farmers Edge in partial payment; security for costs posted by Farmers Edge ($72,300 plus interest) to be released to Farmers Edge; post-judgment...

Orders

  • AGI Suretrack, LLC to pay Farmers Edge Inc costs of the action in the net and inclusive amount of $4,249,115.
  • The security for costs posted by AGI Suretrack, LLC in the amount of $120,000 plus any accrued interest shall be paid to Farmers Edge Inc forthwith in partial payment of the foregoing amounts.