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ARTICLE · 30 JUNE 2021

All-Inclusive And Without Costs Rule 49 Offers

McCague Borlack LLP
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In 1985, Rule 49 of the Rules of Civil Procedure was introduced to encourage parties to make and accept reasonable offers to settle. This has had the effect of discouraging parties from delaying...

CanadaLitigation, Mediation & Arbitration
Van Krkachovski
Van Krkachovski
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All-Inclusive Rule 49 Offers

In 1985, Rule 49 of the Rules of Civil Procedure was introduced to encourage parties to make and accept reasonable offers to settle. This has had the effect of discouraging parties from delaying the judicial process and increasing costs unnecessarily. Rule 49 has had a considerable effect on litigants by virtue of the risk of a large costs award following trial.

To trigger the cost consequences under Rule 49, an offer must meet strict requirements:

  1. the plaintiff or defendant must make its offer at least seven days before the commencement of trial;
  2. the offer must not be withdrawn or expire before the commencement of trial;
  3. the offer must not have been accepted by the other side; and

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