A respondent's rejection of a Calderbank offer is not unreasonable where the respondent's argument on the merits was accepted at first instance, even though it was ultimately overturned on appeal. A Calderbank offer made only days before an appeal hearing, when most costs have already been incurred, carries less weight in the assessment of reasonableness. A UCPR offer made at first instance does not apply to the question of appeal costs but remains a relevant discretionary factor.
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