What is the primary purpose of a Calderbank offer in legal proceedings?

A Calderbank offer serves as a formal settlement proposal made by one party to the other during legal proceedings. The primary purpose of this offer is to encourage resolution of the dispute before it progresses further through the court system. When one party extends a Calderbank offer, it is typically done to show a willingness to settle, which can be useful in promoting negotiation.

A significant aspect of Calderbank offers is that they can influence the costs awarded at the conclusion of the case. If a party receives a Calderbank offer and fails to accept it, yet ultimately receives a less favorable outcome than what was proposed in the offer, the court may take this into consideration when making decisions about costs. This mechanism reinforces the importance of engaging in settlement discussions and can deter prolonging litigation for strategic advantage.

Other options do not align with the express purpose of a Calderbank offer. The request for a review by a higher court relates to appellate procedures, initiating a new claim concerns starting a fresh legal action, and payment into court pertains to securing funds related to a settlement rather than making a formal settlement offer. Each of these options addresses separate legal functions that do not reflect the core objective of a Calderbank offer.