An offer of compromise that does not comply with UCPR r 20.26 (because it is not made exclusive of costs) does not engage the prima facie entitlement to indemnity costs under r 42.15A, but may be considered as a Calderbank offer. A Calderbank offer that is a genuine compromise and whose rejection is unreasonable in the circumstances will support an order for indemnity costs, even where the accompanying letter overstates the weaknesses in the offeree's case. The absence of reference to an intention to seek indemnity costs in a notice of appeal does not prevent such an application.
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