Who Pays Legal Costs After a Court Reference in Ontario?

Who pays costs when a referee’s decision is reviewed in Ontario court?

The party that wins the review motion pays — or rather, receives — costs right away. An Ontario Superior Court of Justice decision, Symtech Innovations Ltd. v. The Toronto Transportation Commission et al., 2026 ONSC 3859 (CanLII), confirms that a review of a referee’s ruling is a distinct step in litigation, and costs are awarded at that step rather than held back until the reference is fully resolved.

What is a court reference and why does it matter for costs?

A court reference is a process where a judge sends specific issues — often accounting, damages calculations, or fact-finding — to a referee (sometimes called a master or an appointed expert) for determination. The referee’s findings can later be reviewed by a judge. Each time a party brings a motion or review in that process, the question arises: does the loser pay costs now, or does the court wait until everything is finished?

The answer matters because references can take months or years. Deferring costs until the end means the winning party at each step carries the financial burden of their legal fees much longer.

Does the general rule that costs follow the event apply to references?

Yes — Ontario courts apply the principle that costs follow each event, including review motions within a reference. The court in this case rejected the argument that costs should be deferred to the final determination. The review was characterized as a self-contained motion step, not merely a preliminary procedural detail. That distinction was enough to trigger an immediate costs award under Rule 57.03 of the Rules of Civil Procedure.

This approach keeps parties accountable at every stage of litigation. It also discourages unnecessary or weak challenges to a referee’s findings, since the challenger risks a costs order if they lose.

How does an Ontario court decide how much costs to award?

The court uses a two-part analysis: first, it decides the scale (here, partial indemnity — the most common scale in Ontario civil litigation); then it determines a specific dollar amount that is fair and reasonable for the unsuccessful party to pay.

Under Rule 57 and section 131(1) of the Courts of Justice Act, the judge weighs factors such as:

• The importance of the issues to the parties
• The complexity of the proceeding and the size of the record
• The reasonable expectations of the losing party about what costs might be
• The conduct of the parties during the litigation

In this case, the court noted that detailed billing dockets were not provided. Rather than refusing costs entirely, the judge exercised discretion to fix a reasonable amount based on the available information and the nature of the proceeding.

What happens when a party does not provide detailed billing records?

The absence of detailed dockets does not automatically defeat a costs claim. Courts in Ontario have broad discretion to fix costs even when the record is imperfect. The judge will look at what is known — the complexity of the matter, the steps taken, the experience of counsel — and arrive at a figure that reflects what a reasonable losing party should have anticipated paying.

This is a practical reality in Ontario litigation: if you want full credit for your legal fees, provide detailed records. But even without them, a court can and will award something.

Does this decision affect employment disputes that go to a reference?

References are less common in employment cases than in commercial or construction disputes, but they do arise — for example, when a court orders a reference to calculate damages, assess compensation owed, or examine complex financial records. If you are involved in an employment matter that has reached that stage, the same costs principles apply.

Our Ontario employment lawyers regularly advise employees and employers on litigation strategy, including the cost risks at each stage of a proceeding. If your dispute is in the Toronto area, our team also assists clients through our Toronto employment law page.

Practical takeaways for businesses and individuals in Ontario litigation

• Costs can be ordered at any distinct step — not just at the end of a case. Budget accordingly when you decide to challenge a referee’s ruling.
• Bring detailed billing records to every costs hearing. Incomplete dockets weaken your claim and give the court less to work with.
• Partial indemnity is the default scale in most Ontario civil proceedings. You will not recover all your legal fees even if you win.
• Deferral of costs is the exception, not the rule. If you want costs deferred, you need a specific reason — general convenience or the ongoing nature of a reference is not enough.
• Seek legal advice before a reference begins. Understanding the cost exposure at each step helps you make informed decisions about whether to proceed, settle, or challenge a referee’s findings.

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This article is automated commentary on a public court decision and is for general information only — not legal advice. Decisions rely on facts unique to each case. If you are affected by a similar issue, contact a lawyer for advice specific to your situation.