An offer of compromise under UCPR r 20.26 that includes any costs term (even 'each party to pay its own costs') is invalid under r 20.26(2) and of no effect under the offer of compromise regime, even in non-monetary cases such as appeals seeking a new trial. Such an offer will not operate as a Calderbank offer unless the offeror expressly manifests an intention for it to do so in the event the offer is ineffective under the rules. Parties seeking to make effective offers in non-monetary appeals should either make the offer exclusive of costs or expressly state the offer is intended to operate as a Calderbank offer in the alternative.
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