The discretion to 'otherwise order' under UCPR rr 42.14, 42.15 and 42.15A is not confined to exceptional circumstances or the avoidance of substantial injustice, but is exercised having regard to all the circumstances. In all or nothing contractual interpretation cases, a nominal offer (here $10,000 against a $600,000 claim) will be treated as an invitation to surrender rather than a genuine offer of compromise, and will not trigger indemnity costs unless the opposing party's case approaches being frivolous or vexatious. Where no fresh offer of compromise is made in appeal proceedings, the general costs discretion under s 98 of the Civil Procedure Act 2005 applies without the presumptive quality of the offer of compromise rules.
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