An offer of compromise proposing that each party pay its own costs is not 'inclusive of costs' and complies with UCPR r 20.26(2)(c). However, in public law proceedings seeking declaratory relief where the respondent council is the only appropriate contradictor, the court will exercise its discretion to 'order otherwise' under r 42.14 and deny indemnity costs, even where the judgment is no less favourable than the offer. A council's refusal of Calderbank offers in such circumstances is not unreasonable.
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