This is an offer of settlement which is made during the course of litigation and has cost consequences. If one party makes a settlement offer to another party which is not accepted, and the litigation then proceeds to a judicial determination and the other party fails to obtain a more favourable result than the offer of settlement, the party making the offer can then seek an order from the Court that the party who has not accepted the offer pay his/her costs from the date of the offer to the date of the judicial decision. It is based on the principles espoused in the case of Calder Bank vs. Calder Bank.

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