The test for indemnity costs following rejection of a Calderbank offer in Western Australia is whether the rejection was unreasonable in all the circumstances, without any qualifying gloss such as 'plainly' or 'so' unreasonable. There is no presumption of entitlement to indemnity costs merely because the offeree fails to better the offer at judgment. A defendant with a case of substance supported by expert evidence does not act unreasonably in rejecting a Calderbank offer and proceeding to trial, even where the plaintiff ultimately obtains a judgment nearly double the offer amount.
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