Tag Archives: Calderbank offers

In Australia, the ‘English rule’ applies to the costs of litigation: the loser pays the winner’s costs. Historically, offers of settlement known as Calderbank offers have the potential to partially reverse this rule. A party who unreasonably rejects a Calderbank offer and obtains a lesser amount after trial faces the risk of having to pay the other party’s costs from the date the unaccepted offer expired. The offers have therefore been generally used in all types of matters to discourage litigation and encourage early settlement.