What is the impact of an offer made by the Defendant that the Plaintiff does not accept?

The impact of an offer made by the Defendant that the Plaintiff does not accept is that the Defendant is entitled to ordinary costs after a judgment if the judgment is in their favor and the offer was reasonable. This principle is grounded in the “offers of compromise” or “ Calderbank” offers, which encourage parties to settle disputes without the need for a trial.

When a Defendant makes a reasonable offer and the Plaintiff fails to accept it, if the ultimate judgment is more favorable to the Defendant than the terms of the settlement offer, the court may rule that the Plaintiff should bear the consequences, including the costs associated with the litigation from that point forward. This encourages parties to engage in settlement discussions in good faith and serves as a mechanism for promoting judicial efficiency.

In contrast, the other potential outcomes do not accurately reflect the legal framework governing settlement offers in civil procedure. For instance, withdrawing a claim is not an automatic requirement when an offer is made. Likewise, while there may be situations in which the Defendant cannot claim any costs based on specific circumstances or misconduct, this is not a general rule of the legal framework. Additionally, the option regarding the Plaintiff claiming indemnity costs is conditional and would depend on different circumstances surrounding the judgment and actions taken by both parties before