A defendant's Calderbank offer for verdict in its favour with each party bearing its own costs is capable of being a genuine offer of compromise, but indemnity costs do not flow as a matter of course from such an offer. The costs consequences of Calderbank offers lie within the Court's general discretion, and there is no prima facie presumption of indemnity costs. The Rules of Court do not provide indemnity costs for unaccepted defendant offers, and this asymmetry between plaintiff and defendant offers reflects sound policy that should inform the exercise of discretion on Calderbank offers.
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