The Court held that a Calderbank offer requiring the plaintiff to consent to judgment with no order as to costs constituted a genuine offer of compromise in an all-or-nothing declaratory proceeding, where the defendant had already incurred significant costs preparing evidence and the offer to forgo recovery of those costs represented a real and valuable concession. The plaintiff's refusal was unreasonable where, by the time of the offer, all information necessary to assess the case was available, the plaintiff had chosen not to file any evidence in support of its claim despite court orders requiring it to do so, and the defendant's evidence was largely unchallenged. The plaintiff's success on the discrete standing issue did not warrant any reduction or set-off of the defendant's costs, particularly where the defendant had been drawn into litigation to defend a lawfully held permit against an ultimately unmeritorious claim.
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