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No Double Costs for “Walk Away” Offer to Settle

In the recent case of CanPacific Engineering Inc. v. Alican Enterprise Inc., 2011 BCSC 680 the Supreme Court confirmed that the dismissal of a lawsuit is not a factor in determining whether a pre-trial formal offer should have been accepted. The above case involved a contractual allowed Alican’s counterclaim for $52,505.95.

Alican delivered an offer to settle that provided nothing to CanPacific. The offer required CanPacific to “walk away” from its damage claim and all of the costs it had incurred. Because of that, the Court found the offer was not one that ought reasonably to have been accepted by CanPacific and denied double costs to Alican.

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