12 Disposition without Trial

Indemnity costs r 63301 all costs incurred except

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Indemnity costs R 63.30.1 all costs incurred except insofar as they are of unreasonable amount or have been unreasonably incurred
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Offers of compromise: plaintiff 26.08(2) If a plaintiff’s offer is rejected, and the plaintiff gets judgment equal to or better than the amount offered, then: If claim concerns death or bodily injury, plaintiff gets costs taxed on an indemnity basis Otherwise, plaintiff gets costs up to and including day of offer on party/party basis and thereafter on an indemnity basis.
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Offers of compromise: defendant 26.08(3) If a defendant’s offer is rejected, and the plaintiff does not get judgment for an amount greater than amount offered by the defendant, then: Defendant pays plaintiff’s costs on party/party basis up to the day the offer was served; and Plaintiff pays defendant’s costs after that date on party/party basis
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And if defendant then wins… Supreme Court Rules are silent so falls to the court’s discretion…. ’However it is well established that … in the exercise of its general discretion, [the court may] award costs to defendant on a more generous basis than party and party from the time the offer was served.’ Stipanov v Mier (No 2) [2006] VSC 424 at 2 (Hollingworth J). See VLRC Table 3 p 635
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Conclusion Rules still allow discretion in making costs orders - “unless the Court otherwise orders” (r 26.08). Settlement offers and related costs orders can be complicated (e.g. where multiple defendants), but don’t need to know the complications for exam purposes.
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