When an offer made by a defendant for pre-trial settlement is reasonably refused, is the fact that the action is ultimately dismissed in its entirety a factor in determining double costs?

British Columbia, Canada


The following excerpt is from Gichuru v. York, 2012 BCSC 1385 (CanLII):

I am also of the view that when an offer made by a defendant for the purpose of achieving a pre-trial settlement is reasonably refused, the mere fact that the action is ultimately dismissed in its entirety is not a consideration with respect to double costs. To take the disposition of the action into account would result in the “hindsight analysis” that Mr. Justice Hinkson, as he then was, cautioned against in Bailey v. Jang, 2008 BCSC 1372, 90 B.C.L.R. (4th) 125 at para. 24. See also: Dodge v. Shaw Cablesystems Ltd., 2009 BCSC 1765 at para. 17. While I acknowledge that the relationship between the offer and the result at trial is specifically mentioned in subrule 37B(6)(b) [now Rule 9-1(6)(b)], I consider it to have no relevance in circumstances such as the present.

An award of double costs is “a punitive measure against a litigant for that party’s failure, in all of the circumstances, to have accepted an offer to settle that should have been accepted”: Hartshorne v. Hartshorne, 2011 BCCA 29, at para. 25 [Hartshorne].

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