Nevertheless, it may be that
the prospect of adverse costs deters lawyers from bringing a class action when the lawyers indemnify their clients; if this is the case, then one would expect to see a marked difference in the number of class actions brought in Ontario compared to a jurisdiction with no cost shifting (such as British Columbia).
The prospect of adverse costs, which often encourages settlement before trial, may transform from an incentive to settle to a source of leverage for plaintiffs, who may feel empowered to proceed to trial and seek a greater recovery than is available through a settlement.
Not exact matches
The argument that
adverse costs awards constitute a barrier to justice in ordinary litigation is a familiar one; it is easy to envision how the
prospect of liability for such
costs would deter a litigant from pursuing an action.