The Court declined to award indemnity costs to the successful respondent, holding that in an 'all or nothing' contractual interpretation dispute, the respondent's filed offer did not constitute a 'genuine compromise' within the meaning of UCR r 132.10(1)(d). The Court applied Regency Media to find that where the applicant's construction was reasonably arguable and acceptance of the offer would have amounted to complete capitulation of a $3.8 million claim, it was not unreasonable for the applicant to reject the offer. Standard basis costs were ordered instead.
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