--(1) The general rule for defendant's offers is that, where the defendant makes an offer to settle which is not accepted and
----(a) in the case of an offer to settle the claim for damages, the court awards less than 85% of the amount of the defendant's offer; or
----(b) in any other case, the court considers that the claimant acted unreasonably in not accepting the defendant's offer,
--the claimant must pay any costs incurred by the defendant after the date on which the defendant made the offer.
--(2) Where a claimant makes an offer to settle and-
----(a) in the case of an offer to settle a claim for damages, the court awards an amount which is equal to or more than the amount of the offer; or
----(b) in any other case, the court considers that the defendant acted unreasonably in not accepting the claimant's offer,
--the Court may, in exercising its discretion under section 25 of the Supreme Court of Judicature Act (Chap. 4:01) (Power of courts to award interest on debt and damages), take into account the higher rates of interest set out in the following table:
--"net" means the amount of damages on the claim less the amount (if any) awarded on any counterclaim.
--Example:
--One year since the offer
--Damages- $400,000, the court might award 20% on the first $50,000 for one year ($10,000);
--plus 15% interest on the next $100,000 for one year ($15,000);
--plus 12% interest on the next $150,000 for one year ($18,000);
--plus 10% interest on the remaining $100,000 for one year ($10,000),
--a total of $53,000 interest on damages.
--(3) The court may decide that the general rule under paragraph (1) is not to apply in a particular case.
--(4) In deciding whether the general rule should not apply and in considering the exercise of its discretion under paragraph (2), the court may take into account-
----(a) the terms of any offer;
----(b) the stage in the proceedings at which the offer was made;
----(c) the information available to the offeror and the offeree at the time that the offeror made the offer; and
----(d) the conduct of the offeror and the offeree with regard to giving or refusing information for the purposes of enabling the offer to be made or evaluated.
--(5) This rule applies to offers to settle at any time, including before proceedings were started.
Notes
Back to Part (36. Offers to Settle)
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