Lawyers often refer to an offer of settlement being a
"Calderbank offer." The term originates from the
English case of Calderbank v Calderbank [1976] Fam Law 93;
[1975] 3 All ER 333; [1975] 3 WLR 586; [1976] Fam 93.
Calderbank was a case litigated under English family
law legislation. In that case, the Court of Appeal ordered a
husband to pay (see below) the wife her costs from the date she
made an offer of compromise to the husband. The rationale for the
court making this order was that the husband should have accepted
that offer, thus obviating the need for a hearing on the merits of
the case.
Costs in civil cases
In civil cases, the usual rule is that the losing party pays the
costs of the winning party (see for example
Rule 42.1 of the Uniform Civil Procedure Rules 2005 (NSW).