The plaintiff expert witness sued the defendant law firm for unpaid fees and subsequently served a Rule 49 offer to settle for $50,000 plus HST 'in full and complete satisfaction of the plaintiff's claim'.
The defendant accepted the offer days before trial and argued the settlement amount was inclusive of costs.
The motion judge agreed, finding the offer unambiguous.
On appeal, the Court of Appeal reversed, holding that the motion judge erred by adopting a literal interpretation and failing to consider the factual matrix, including the Rule 49 context and the timing of the offer.
The Court concluded the offer did not dispose of costs, entitling the plaintiff to costs under Rule 49.07(5)(b).