Following a nine‑week jury trial arising from a motor vehicle accident, the plaintiffs obtained a damages award substantially lower than the amount claimed.
The defendants relied on Rule 49.10(2) of the Rules of Civil Procedure and argued they were entitled to partial indemnity costs from the date of a pre‑trial offer to settle because the judgment was allegedly less favourable than their offer.
The court held that although the offer met the timing requirement, the offer’s treatment of prejudgment interest on a lump‑sum amount was ambiguous and incapable of precise calculation for mixed heads of damages attracting different statutory interest rates under the Courts of Justice Act.
Because the offer lacked sufficient certainty to trigger the Rule 49 cost consequences, the defendants failed to meet their burden under Rule 49.10(3).
Considering the Rule 57 factors and the circumstances of the litigation, the court awarded the plaintiffs their partial indemnity costs throughout the proceeding.