Rule 14 – Offer to Settle
14.01 A party may serve on any other party an offer to settle a claim on the terms specified in the offer. O. Reg. 258/98, r. 14.01.
Written Documents
14.01.1 (1) An offer to settle, an acceptance of an offer to settle and a notice of withdrawal of an offer to settle shall be in writing. O. Reg. 78/06, s. 28.
Use of Forms
(2) An offer to settle may be in Form 14A, an acceptance of an offer to settle may be in Form 14B and a notice of withdrawal of an offer to settle may be in Form 14C. O. Reg. 78/06, s. 28.
Terms of Settlement
(3) The terms of an accepted offer to settle may be set out in terms of settlement (Form 14D). O. Reg. 78/06, s. 28.
Time for Making Offer
14.02 (1) An offer to settle may be made at any time. O. Reg. 78/06, s. 29.
Costs Consequences
(2) The costs consequences referred to in rule 14.07 apply only if the offer to settle is served on the party to whom it is made at least seven days before the trial commences. O. Reg. 78/06, s. 29.
Withdrawal
14.03 (1) An offer to settle may be withdrawn at any time before it is accepted, by serving a notice of withdrawal of an offer to settle on the party to whom it was made. O. Reg. 78/06, s. 29.
Deemed Withdrawal
(2) If an offer to settle specifies a date after which it is no longer available for acceptance, and has not been accepted on or before that date, the offer shall be deemed to have been withdrawn on the day after that date. O. Reg. 78/06, s. 29.
Expiry When Court Disposes of Claim
(3) An offer may not be accepted after the court disposes of the claim in respect of which the offer is made. O. Reg. 78/06, s. 29.
No Disclosure to Trial Judge
14.04 If an offer to settle is not accepted, no communication about it or any related negotiations shall be made to the trial judge until all questions of liability and the relief to be granted, other than costs, have been determined. O. Reg. 78/06, s. 29.
Acceptance of an Offer to Settle
14.05 (1) An offer to settle may be accepted by serving an acceptance of an offer to settle on the party who made it, at any time before it is withdrawn or before the court disposes of the claim in respect of which it is made. O. Reg. 78/06, s. 30.
Payment Into Court As Condition
(2) An offer by a plaintiff to settle a claim in return for the payment of money by a defendant may include a term that the defendant pay the money into court; in that case, the defendant may accept the offer only by paying the money into court and notifying the plaintiff of the payment. O. Reg. 258/98, r. 14.05 (2).
(3) If a defendant offers to pay money to a plaintiff in settlement of a claim, the plaintiff may accept the offer with the condition that the defendant pay the money into court; if the offer is so accepted and the defendant fails to pay the money into court, the plaintiff may proceed as provided in rule 14.06. O. Reg. 258/98, r. 14.05 (3).
Costs
(4) If an accepted offer to settle does not deal with costs, the plaintiff is entitled,
(a) in the case of an offer made by the defendant, to the plaintiff’s disbursements assessed to the date the plaintiff was served with the offer;
(b) in the case of an offer made by the plaintiff, to the plaintiff’s disbursements assessed to the date that the notice of acceptance was served. O. Reg. 258/98, r. 14.05 (4).
Failure to Comply With Accepted Offer
14.06 If a party to an accepted offer to settle fails to comply with the terms of the offer, the other party may,
(a) make a motion to the court for judgment in the terms of the accepted offer; or
(b) continue the proceeding as if there had been no offer to settle. O. Reg. 258/98, r. 14.06.
Costs Consequences of Failure to Accept
14.07 (1) When a plaintiff makes an offer to settle that is not accepted by the defendant, the court may award the plaintiff an amount not exceeding twice the costs of the action, if the following conditions are met:
1. The plaintiff obtains a judgment as favourable as or more favourable than the terms of the offer.
2. The offer was made at least seven days before the trial.
3. The offer was not withdrawn and did not expire before the trial. O. Reg. 258/98, r. 14.07 (1).
(2) When a defendant makes an offer to settle that is not accepted by the plaintiff, the court may award the defendant an amount not exceeding twice the costs awardable to a successful party, from the date the offer was served, if the following conditions are met:
1. The plaintiff obtains a judgment as favourable as or less favourable than the terms of the offer.
2. The offer was made at least seven days before the trial.
3. The offer was not withdrawn and did not expire before the trial. O. Reg. 258/98, r. 14.07 (2).
(3) If an amount is awarded under subrule (1) or (2) to a self-represented party, the court may also award the party an amount not exceeding $500 as compensation for inconvenience and expense. O. Reg. 78/06, s. 31.