Bringing or Defending a Civil Case
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14. Consequence of non-acceptance of “sanctioned offer” and “sanctioned payment”

If a plaintiff decides to proceed to trial but he is not able to get a better result than the defendant’s “sanctioned offer” or “sanctioned payment”, the plaintiff may have to bear the defendant’s costs after the latest date when the “sanctioned offer” or “sanctioned payment” could have been accepted. He may have to bear costs on an indemnity basis with interest running on such costs at a penalty rate of up to 10% over the judgment rate.

By the same token, if a defendant fails to improve upon the “sanctioned offer” of the plaintiff, he may have to bear the plaintiff’s costs, with some portion of those costs being charged on an indemnity basis from an appropriate date and with interest running thereon at up to 10% above judgment rate. He may also have to pay the whole or part of any sum awarded to the plaintiff at up to 10% over judgment rate.

The Court has discretion on costs and the penal interest rate chargeable. The Court will consider:

  • the terms of the “sanctioned offer”;
  • the stage in the proceedings when the “sanctioned offer” was made;
  • the information available to the parties at the time when the “sanctioned offer” was made; and
  • the conduct o the parties with regard to the giving or refusing to give information for the purposes of enabling the offer to be made or evaluated.
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