Where an appeal is finely balanced and the trial judge's sole basis for finding was erroneous, rejection of a Calderbank offer requiring payment of approximately 80-85% of the first instance judgment is not unreasonable, and indemnity costs will not be ordered. The combination of a pre-trial offer of compromise and a Calderbank offer on appeal does not automatically warrant indemnity costs; the critical question remains whether rejection of the offer was unreasonable.
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