An uncertain state of the law at the time a Calderbank offer is made does not, of itself, make rejection of the offer reasonable; an offer of compromise is by its nature intended to include some element to account for such uncertainty. A Calderbank offer made at trial continues to operate on appeal, but the failure to renew the offer during the appeal is a relevant factor that may undermine a claim for indemnity costs of the appeal, particularly where the offeror was unsuccessful on grounds occupying the bulk of the appeal hearing.
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