The mere reasonableness of rejecting an offer of compromise is insufficient to displace the presumptive costs order under Pt 39A r25(6). The discretion to 'otherwise order' requires proper reasons arising in an exceptional case. Where a defendant withholds evidence at arbitration that would have destroyed the plaintiff's credibility, the defendant bears primary responsibility for the costs of the arbitration and rehearing, but this does not necessarily override the costs consequences of the plaintiff's rejection of subsequent settlement offers.
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