Following a jury trial arising from a motor vehicle accident, the court determined costs consequences after the plaintiff obtained a judgment significantly lower than the defendant’s Rule 49 offer to settle.
The jury awarded $100,000 in damages but the net payable amount after statutory deductions and contributory negligence was $49,000.
The court held that the defendant’s offer was substantially more favourable than the judgment and applied Rule 49.10 of the Rules of Civil Procedure.
The plaintiff was awarded partial indemnity costs up to the date of the defendant’s offer, while the defendant received partial indemnity costs thereafter.
The court fixed the plaintiff’s costs to the date of the offer at $65,000 and the defendant’s costs after the offer at $95,000, with an additional $7,000 to the plaintiff for post‑trial motions.