The successful plaintiff sought costs following judgment in an action for accounting services, requesting partial indemnity costs to the date of its Rule 49 offer to settle and substantial indemnity costs thereafter.
The defendant argued the offer was not a genuine settlement offer because it demanded the full amount claimed and that the case involved a substantive defence.
The court held that although an offer to settle need not contain an element of compromise, the claim was not a liquidated claim and the defendant had raised a defence of substance regarding whether it was liable as principal or agent.
Exercising its discretion under Rule 49.10(1), the court ordered otherwise and declined to award substantial indemnity costs.
Costs were awarded on a partial indemnity basis throughout.