Federal Courts Rules (SOR/98-106)

Marginal note:Consequences of failure to accept plaintiff’s offer

• 420 (1) Unless otherwise ordered by the Court and subject to subsection (3), where a plaintiff makes a written offer to settle and obtains a judgment as favourable or more favourable than the terms of the offer to settle, the plaintiff is entitled to party-and-party costs to the date of service of the offer and costs calculated at double that rate, but not double disbursements, after that date.

• Marginal note:Consequences of failure to accept defendant’s offer

  (2) Unless otherwise ordered by the Court and subject to subsection (3), where a defendant makes a written offer to settle,

  • (a) if the plaintiff obtains a judgment less favourable than the terms of the offer to settle, the plaintiff is entitled to party-and-party costs to the date of service of the offer and the defendant shall be entitled to costs calculated at double that rate, but not double disbursements, from that date to the date of judgment; or

  • (b) if the plaintiff fails to obtain judgment, the defendant is entitled to party-and-party costs to the date of the service of the offer and to costs calculated at double that rate, but not double disbursements, from that date to the date of judgment.

• Marginal note:Conditions

  (3) Subsections (1) and (2) do not apply unless the offer to settle

  • (a) is made at least 14 days before the commencement of the hearing or trial; and

  • (b) is not withdrawn and does not expire before the commencement of the hearing or trial.