Can a court award double costs if a settlement offer does not contain the required wording?

British Columbia, Canada


The following excerpt is from Middleton v. Howard, 2012 BCSC 1431 (CanLII):

In Wormell v. Hagen, 2009 BCSC 1530, the court was similarly addressing a settlement offer which did not contain the required wording. At para. 8, Mr. Justice Goepel held that since the offer was not an “offer to settle” as that term is defined in the Rules, the cost options, including an award of double costs, were not triggered in accordance with the Rule.

The court in Bailey v. Jang, 2008 BCSC 1372, discussed the intended purposes of the cost provisions under the Rules. In particular, at paras. 15 to 17, Mr. Justice Hinkson (as he then was) observed that one of those purposes is to encourage settlement of matters and to penalize a party who unreasonably declines a settlement offer.

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