Defendant Not Awarded Costs Despite Beating Formal Offer to Settle
In the case of GATZKE V. SIDHU, 2011 BCSC 1214 (“GATZKE”), released on September 9, 2011, Saunders J. provided reasons on costs. In an earlier judgment on liability and quantum of damages (reported at 2011 BCSC 988), the Plaintiff was found to be 70% at fault and consequently received only 30% of the $31,500 awarded at trial.
However, before any award of damages was made the Defendants had made a settlement offer of $50,000 pursuant to Rule 9-1 of the SUPREME COURT CIVIL RULES, an amount much higher than the approximately $10,000 the Plaintiff ultimately received. Because the settlement offer was higher than the amount awarded, the Defendants sought an order stating that they were entitled to all of their costs incurred after the offer was made. This kind of order is permitted by Rule 9-1(5).