When Close Enough Is Good Enough: Recent Case Law On The Application Of Rule 49

Elbakhietv.Palmer, 2014 ONCA 544 and
Mayer et al.v. 1474479 Ontario Inc.et al., 2014 ONSC 2622

Overview

Under Rule 49, offers to settle can result in cost consequences if certain requirements are satisfied and if one of the parties "beats its offer". Two recent Ontario decisions have helped to clarify what offers will satisfy this rule. Both cases stemmed from motor vehicle accidents where the defendants had made offers to settle that were similar to the judgments ultimately obtained by the plaintiffs.

Elbakhiet v. Palmer

In Elbakhiet v. Palmer, the plaintiffs were awarded damages totalling $144,013.07 at trial. The trial judge determined that an offer of $145,000, plus costs and prejudgment interest, made by the defendants six days prior to opening arguments, was compliant with Rule 49.