An offer of compromise that is trivial relative to the amount claimed — here, less than US$2,000 against a claim exceeding US$800,000 — will be characterised as contemptuous and will not engage the indemnity costs consequences of UCPR r 42.15, regardless of the ultimate outcome. The costs savings that would have resulted from acceptance of the offer are irrelevant to whether the offer itself was a genuine compromise. Where evidence establishes the actual rate of return on funds used to pay costs, the court may order interest on costs at a rate below the prescribed rate to reflect the compensatory purpose of the award.
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