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ARTICLE · 12 MARCH 2015

The Perils Of Ignoring Faulty Offers To Settle: Expanded Discretion Under Rule 49

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A variety of considerations go into deciding whether to accept an offer to settle a business dispute.

CanadaLitigation, Mediation & Arbitration
Ben Bathgate
Ben Bathgate
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A variety of considerations go into deciding whether to accept an offer to settle a business dispute. One of the less obvious of these considerations relates to cost consequences. Under Rule 49 of the Rules of Civil Procedure rejecting an offer to settle in a civil proceeding may lead to significant consequences when it comes time for the court to award costs: if it turns out that the party that rejected the offer to settle would have been in the same position or better if it had accepted the offer, a higher rate of costs may be awarded to penalize that party for unnecessarily lengthening the proceeding. The purpose of Rule 49 is to encourage settlement and, whenever possible, avoid a trial.

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