OFFERS TO SETTLE

Small Claims Court Rules
O. Reg 258/98

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:

• The plaintiff obtains a judgment as favourable as or more favourable than the terms of the offer.
• The offer was made at least seven days before the trial.
• The offer was not withdrawn and did not expire before the trial.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:

• The plaintiff obtains a judgment as favourable as or less favourable than the terms of the offer.
• The offer was made at least seven days before the trial.
• The offer was not withdrawn and did not expire before the trial.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.