Opponent's Costs Indemnity (including Security for Costs)

The rising cost of litigation in Canada means that plaintiffs often face significant barriers to access to justice. These costs may be the plaintiff's own or the potential of having to pay the defendant's costs, if the case is lost.

The risk of paying the defendant's costs if the case is lost can impose an unmanageable burden on a plaintiff, who may have already paid large sums in expert witness and legal fees. The risk can deter potential plaintiffs from pursuing the case or cause them to accept an early and often disadvantageous settlement of their claim.

OCI© will help level the playing field for plaintiffs. This insurance protects the plaintiff against the possibility of a court costs award in favour of the defense, should the plaintiff lose the case.

OCI© may also be considered for Security for Costs. It will assist plaintiffs, typically those from out-of-province jurisdictions, who are ordered to file security for costs. In such cases, a court ordering the plaintiff to file security for costs ensures that a defendant who wins a case will be able to recover its court costs without having to go out of province, because the funds or the security lies with the court. Many cases are abandoned because the plaintiffs cannot afford to put up the security for costs.

One of the features of OCI© is that funding can be arranged for the OCI© insurance premium on the basis that the plaintiffs 'Owe Nothing if the Case is Lost'. Parapet Underwriters will refer applicants to the Canadian litigation funder, Lexfund, www.lexfund.ca.

Considering the harsh reality of escalating court costs and the possibility that a plaintiff may be liable to pay opponent's costs, OCI© is a strategic risk management tool designed for plaintiffs.