As previously observed by other courts, most recently by Smith J. in Dunstan v. Flying J Travel Plaza, 2007 CanLII 819 (ON LRB), [2007] O.J. No. 4089 (S.C.J.), the drafters of Rule 49 did not provide for costs consequences in favour of a defendant that serves an offer in Form 49 for dismissal of the action without costs. Rule 49.10(2) only provides for partial indemnity costs to a defendant from the date of an offer in Form 49 where the plaintiff obtains judgment in some amount, whether as favourable as or less so than the terms of the defendant’s offer.
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