Can I recover my legal costs if I have to sue the seller and win?
Generally, a successful party in Ontario litigation can recover some of their legal costs from the losing side, but usually only a portion of the actual amount spent, not full reimbursement, since courts have discretion over costs awards based on how the case was conducted and other factors. Winning doesn't automatically mean being made completely whole on legal fees just because you were in the right.
Separately, some purchase agreements include a specific indemnity clause requiring the losing party to cover the other side's costs of enforcing the agreement, which can provide a stronger recovery than the court's general costs rules alone would give you — check whether your specific agreement includes anything like this. Whether you're relying on the court's general discretion or a contractual costs provision, don't build your financial expectations around full cost recovery before confirming which framework actually applies to your claim, since the gap between the two can be significant depending on how the litigation unfolds.
Key takeaways
- Winning generally recovers only a portion of actual legal costs, not full reimbursement.
- Cost awards are subject to the court's discretion based on how the case was conducted.
- Some purchase agreements include their own indemnity clause covering enforcement costs.
- Check your specific agreement rather than assuming full recovery either way.