The test of unreasonableness under Rule 41.05 is objective, measured against the Court's ultimate determination of liability, not the defendant's subjective state of knowledge before trial. Where a plaintiff has made full disclosure and a timely offer at least as favourable as the adjudged liability, non-acceptance is prima facie unreasonable. The discretion to order solicitor and client costs should be exercised having regard to the penal and incentive purpose of the Rule, and ordinarily the order should extend to all costs from the date of the offer, not merely costs referable to the issue on which the offer was made.
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