Where multi-party proceedings are resolved by settlement without a determination on the merits, a defendant in whose favour judgment is entered by consent has no prima facie entitlement to costs; the costs discretion is at large and the trial judge may assess the reasonableness of the parties' conduct. A Calderbank offer made at an early stage of complex litigation with only fourteen days to respond is unreasonable and will not support an order for indemnity costs.
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