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Difference between revisions of "ICBC and Personal Injury Claims (12:XII)"
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ICBC and Personal Injury Claims (12:XII) (view source)
Revision as of 19:59, 16 August 2019
, 19:59, 16 August 2019→4. Formal Offers to Settle and Cost Consequences
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Under Rule 9-1 of the ''Supreme Court Rules'', a plaintiff or defendant who refuses a reasonable offer to settle may be penalized for needlessly dragging out the litigation. | Under Rule 9-1 of the ''Supreme Court Rules'', a plaintiff or defendant who refuses a reasonable offer to settle may be penalized for needlessly dragging out the litigation. | ||
'''NOTE''': An offer to settle does not expire due to a counter offer being made. | |||
For Rule 9-1 to be engaged, a formal offer to settle must be made in writing, and delivered to all parties of record, and must contain the language: | For Rule 9-1 to be engaged, a formal offer to settle must be made in writing, and delivered to all parties of record, and must contain the language: | ||
*"The ............''[party(ies)]''............, ............''[name(s) of the party(ies)]''............, reserve(s) the right to bring this offer to the attention of the court for consideration in relation to costs after the court has pronounced judgment on all other issues in this proceeding." | |||
"The ............''[party(ies)]''............, ............''[name(s) of party(ies)]''............, reserve(s) the right to bring this offer to the attention of the court for consideration in relation to costs after the court has pronounced judgment on all other issues in this proceeding." | |||
Such an offer to settle must not be disclosed to the court/jury or set out in any proceeding until all issues in the proceeding, other than | Such an offer to settle must not be disclosed to the court/jury or set out in any proceeding until all issues in the proceeding, other than costs, have been determined. Also, an offer to settle does not constitute an admission. | ||
If a plaintiff accepts an offer, the sum of which falls in the jurisdiction of the Provincial | If a plaintiff accepts an offer, the sum of which falls in the jurisdiction of the Provincial Court (''Small Claims Act''), they are '''not''' entitled to costs, other than disbursements. However, this rule can be overridden if the court finds a sufficient reason for the proceeding taking place in the Supreme Court. | ||
The court, in assessing costs has broad discretion to consider a refusal to settle in making an order with respect to costs. The court may consider: | The court, in assessing costs has broad discretion to consider a refusal to settle in making an order with respect to costs. The court may consider: | ||
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*award double costs for all or some of the steps taken in the proceeding after the delivery date of the formal offer; | *award double costs for all or some of the steps taken in the proceeding after the delivery date of the formal offer; | ||
*award a party costs for all or some of the steps taken in the proceeding after the delivery date of the formal offer which that party would be entitled to had the offer not been made; | *award a party costs for all or some of the steps taken in the proceeding after the delivery date of the formal offer which that party would be entitled to had the offer not been made; | ||
*Where the plaintiff refuses an offer to settle from the defendant, and the eventual judgement is no greater than the offer, the court may | *Where the plaintiff refuses an offer to settle from the defendant, and the eventual judgement is no greater than the offer, the court may award the defendant’s costs in respect of all or some of the steps taken in the proceeding after the date of the offer. | ||
The rules penalizing a plaintiff for overreaching the true value of a claim can be catastrophic, and can visit financial ruin upon a claimant who does not exercise a sober and realistic assessment of his or her claim as he or she proceeds into Supreme Court. It is entirely within the realm of possibility that a claimant who refuses to accept an offer of $30,000.00, after judgment for $29,000.00 (i.e. lower than the offer to settle) would finish the day, after paying the insurer’s costs and disbursements, and his or her own disbursements, with '''nothing''' or '''less than nothing''': a debt to the insurer and his or her own lawyer for disbursements. | The rules penalizing a plaintiff for overreaching the true value of a claim can be catastrophic, and can visit financial ruin upon a claimant who does not exercise a sober and realistic assessment of his or her claim as he or she proceeds into Supreme Court. It is entirely within the realm of possibility that a claimant who refuses to accept an offer of $30,000.00, after judgment for $29,000.00 (i.e. lower than the offer to settle) would finish the day, after paying the insurer’s costs and disbursements, and his or her own disbursements, with '''nothing''' or '''less than nothing''': a debt to the insurer and his or her own lawyer for disbursements. | ||
