The Court of Appeal refused indemnity costs following a Calderbank offer where the offer involved only a marginal reduction in the judgment sum ($52,904.97) but sought to expand the costs payable by converting party/party costs to indemnity costs for a period, creating uncertainty as to the net benefit. The Court held there was no real element of compromise in the offer, characterising it as little more than an invitation to abandon the appeal, and that the appeal itself was not without arguable merit.
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