In a protracted multi-party domestic building dispute where costs ran into millions of dollars but the net judgment was approximately $50,000, the Court held that where there are mixed successes on conceptually distinct claims, it is appropriate to make separate issue-based costs orders rather than a single overarching order following the overall event. The Builder was awarded indemnity costs on the stone defect issues on the basis that the Owner's case was hopeless from the outset — she could never prove non-compliance with the varied contractual specification — and the costs incurred were grossly disproportionate to the outcome. The Architect, as the manifestly successful party (having obtained only a de minimis judgment against it of $164.38), was awarded standard costs until the date of its settlement offer and indemnity costs thereafter, while no order as to costs was made on the Arbitration issues or the Builder's failed primary action, reflecting the application of the UCR r 194.5(11) threshold and the mixed results.
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