Where an appellant's success on appeal depends significantly on late amendments to pleadings made during trial, the costs of the first instance proceeding may be discounted to reflect the late amendments. An offer of compromise made before the amendments that determined the outcome of the litigation will not attract indemnity costs, as the refusal of the offer was not unreasonable in those circumstances. Costs of an appeal may also be discounted where the appellant pursues grounds of appeal that lack evident merit.
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