Where a party in possession of a document fatal to the opposing party's case fails to disclose it before or during litigation, and the opposing party subsequently discontinues upon learning of the document, the party in possession may be ordered to pay the discontinuing party's costs on the basis that their failure to disclose constituted unreasonable conduct that caused the unnecessary litigation. The inference that a party was in possession of a document at all material times may be drawn from the fact of later possession, particularly where the party fails to adduce evidence explaining when possession was acquired.
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