Costs in cases involving damages awards of not more than an amount equal to the upper offer limit
56 Costs in cases involving damages awards of not more than an amount equal to the upper offer limit
This section applies if a court awards an amount equal to the upper offer limit or less in damages in a proceeding based on a claim, but it does not apply to the costs of an appellate proceeding.
If the court awards an amount equal to the lower offer limit or less in damages, the court must apply the following principles—
if the amount awarded is less than the claimant’s mandatory final offer but more than the respondent’s, or the respondents’, mandatory final offer, no costs are to be awarded;
if the amount awarded is equal to, or more than, the claimant’s mandatory final offer, costs are to be awarded to the claimant on an indemnity basis as from the day on which the proceeding started, but no award is to be made for costs up to that date;
if the amount awarded is equal to, or less than, the respondent’s, or the respondents’, mandatory final offer, costs are to be awarded to the respondent or respondents on a standard basis as from the day on which the proceeding started, but no award is to be made for costs up to that date.
If the court awards more than an amount equal to the lower offer limit but not more than an amount equal to the upper offer limit in damages, the court must apply the following principles—
if the amount awarded is less than the claimant’s mandatory final offer but more than the respondent’s, or the respondents’, mandatory final offer, costs are to be awarded to the claimant on a standard basis up to the declared costs limit;
if the amount awarded is equal to, or more than, the claimant’s mandatory final offer, costs are to be awarded to the claimant on the following basis—
costs up to the date on which the proceeding started are to be awarded on a standard basis up to the declared costs limit;
costs on or after the date on which the proceeding started are to be awarded on an indemnity basis;
if the amount awarded is equal to, or less than, the respondent’s, or the respondents’, mandatory final offer, costs are to be awarded on the following basis—
costs up to the day on which the proceeding started are to be awarded to the claimant on a standard basis up to the declared costs limit;
costs on or after the day on which the proceeding started are to be awarded to the respondent or respondents on a standard basis.
The court must not award costs to a party related to the introduction of evidence by the party that is unnecessarily repetitive.
Example—
If a claimant calls 2 or more expert witnesses from the same area of expertise to give evidence to substantially the same effect, and the claimant is entitled to costs of the proceeding under the principles laid down in this section, the court might only allow costs related to 1 of the expert witnesses.
Unless an award of damages is affected by factors that were not reasonably foreseeable at the time of the exchange of mandatory final offers, the court must not award costs to a party related to investigations or gathering of evidence by the party after—
the conclusion of the compulsory conference; or
if the parties or the court dispensed with the compulsory conference, the day when the parties completed the exchange of mandatory final offers.
If an award of damages is affected by factors that were not reasonably foreseeable by a party at the time of making the party’s mandatory final offer, the court may, if satisfied that it is just to do so, make an order for costs under subsection (2) or (3) as if the reference to a mandatory final offer in the relevant subsection were a reference to a later offer made in the light of the factors that became apparent after the parties completed the exchange of mandatory final offers.
Example—
Suppose that a claimant’s medical condition suddenly and unexpectedly deteriorates after the date of the final offers and the court makes a much higher award of damages than would have been reasonably expected at that time. In that case, the court may ignore the mandatory final offers and award costs on the basis of later offers of settlement.
This section does not limit the court’s power under section 48.
In this section—
party does not include contributor.
This Act’s bill:Explanatory memorandum
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