When someone is injured in a car accident and sues for compensation, many people assume that the amount awarded for damages is the most important part of the case. But two recent decisions from the Ontario Court of Appeal show that legal costs—the amount one party must pay to cover some of the other side’s lawyer fees and expenses—can sometimes play an even bigger role.

Two 2025 cases, Barry v. Anantharajah and Pye v. Di Trapani, highlight how Ontario courts decide who pays for legal costs and why those amounts can be much higher than expected.

What Happened in These Cases?

Barry v. Anantharajah

The injured pedestrian received only $16,160.50 in damages after a jury decided she was partly responsible and after legal deductions were applied.
But despite the small award, the judge ordered the defendant to pay $300,000 in legal costs, and the Court of Appeal agreed.

Why?:

Because the defendant refused to offer any money to settle the case, even though her own expert agreed the accident had caused some psychological injury. Since the plaintiff had no real option but to go to trial, the court found it fair that the defendant cover the majority of the legal costs.

Barry v Anantharajah 2025onca603

Pye v. Di Trapani

In another case, a jury awarded the injured plaintiff just over $1 million in damages. After the trial, the judge awarded nearly the same amount again-about $995,000-for legal costs and expenses, plus over $84,000 in interest. The Court of Appeal upheld this too. This happened because:

  • The case was complex
  • The plaintiff’s lawyers worked efficiently and built a strong case
  • The plaintiff had made a reasonable settlement offer well before trial

pye v Trapani 2025onca355

Key Takeaways for Clients

1. Costs Can Be High Even When Damages Are Low
A small damages award does not mean low legal costs. Courts can and do award substantial costs where one party acted unreasonably or forced the matter to trial.
2. Reasonable Settlement Offers Matter
If you make a fair settlement offer and the other side refuses, the court may require them to pay a significant portion of your legal costs.
3. Going to Trial Is Expensive for Both Sides
Trials involving medical experts, multiple witnesses, and complex evidence can create high legal expenses. Courts recognize this and often order the unsuccessful party to cover a large share of those costs.
4. Insurance Companies Must Act Reasonably
Courts have warned insurers that refusing to offer any money in cases where some damages are clearly possible can backfire.

What This Means for You: If you are injured in a motor vehicle accident:

  • Your lawyer’s strategy, including offers to settle, can influence not only your compensation but also the legal costs outcome.
  • Even if your damages appear modest, pursuing your claim may still make sense, especially where the insurer refuses fair settlement.
  • Costs decisions help ensure access to justice for injured people who cannot afford lengthy litigation.

If you have questions about how costs might affect your case, we are here to help you navigate the process and make informed decisions.