What are the consequences of failing to accept an Offer to settle?

Offers to Settle are the yardstick with which to measure success and are significant both in considering liability and quantum as set out in Osmar v. Osmar, 2000 CanLII 20380 (ON SC), 8 R.F.L. (5th) 387. Subrule 18 (14) of the rules sets out the cost consequences of failing to accept an Offer to Settle: 18(14) A party who makes an offer is, unless the court orders otherwise, entitled to costs to the date the offer was served and full recovery of costs from that date, if the following conditions are met: 1. If the offer relates to a motion, it is made at least one day before the motion date. 2. If the offer relates to a trial or the hearing of a step other than a motion, it is made at least seven days before the trial or hearing date. 3. The offer does not expire and is not withdrawn before the hearing starts. 4. The offer is not accepted. 5. The party who made the offer obtains an order that is as favourable as or more favourable than the offer.