An unsuccessful appellant's failure to accept a Calderbank offer that is substantially more favourable than the judgment below will result in indemnity costs from the date of expiry of the offer, unless the appellant can identify a reason for non-acceptance beyond the usual prospects of success in litigation. The mere fact that the offeror subsequently makes a lower offer after the hearing is irrelevant to the reasonableness of the earlier refusal. However, the raising and subsequent abandonment of hopeless grounds of appeal does not alone justify indemnity costs where the remaining grounds are not entirely without arguable merit.
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