Offers to Settle in King's Bench Cases

Parties to a lawsuit can agree to settle a matter on the terms they decide. This usually involves several offers back and forth before the parties agree. A formal offer to settle is a type of offer that has rules governing its use. If a formal offer is rejected and the party who made it receives a judgment that is as good or better than the offer, they can get double the amount of costs.

A formal offer must be made within 10 days from when the trial or an application for summary judgment is scheduled to start. The offer must be made using Form 4-26 of the King’s Bench Forms. The offer should be very specific. For example, if a sum of money must be paid the exact amount must be stated. An offer to settle will typically include some kind of compromise. It must include:

• the name of the party making the offer and the name of the party the offer is being made to
• what the offer is and any conditions attached to it
• whether interest is included in the amount and, if not, details of the interest rate payable under the terms of the offer
• whether costs are included in the amount and, if not, the amount of the costs and the date to which they are payable under the terms of the offer
• what needs to be done to accept the offer
• a form for the other party to sign if they accept the offer
• a notice that rejecting the offer may make them liable to pay double costs if the party making the offer receives a judgment that is as good or better than the offer

A formal offer cannot be withdrawn without the permission of the court. The offer is open for acceptance for at least 30 days or longer if set out in the offer. The party that wants to accept the offer must serve the other party with notice that it has been accepted. If it is not accepted and the party who made the offer receives a judgment that is as good or better than the offer, they can ask the court for more in costs.