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Offers to settle made under the compromise rules (of the Rules of Court) may affect the amount of costs that are awarded. If the plaintiff makes a reasonable offer to settle and recovers a judgment for more than the amount of the offer, the fee portion of the costs awarded to the plaintiff will be double the fees set out in Schedule C for all steps that occurred after service of the offer. The trial judge determines whether the offer was reasonable given a number of different factors.
If a defendant makes an offer under the compromise rules to pay an amount in settlement of the claim and the plaintiff recovers a judgment against that defendant in an amount less than the offer, the defendant will be awarded costs for all steps that occurred after service of the offer if the trial judge determines that the offer was reasonable. If the action is dismissed entirely, the fee portion of those costs will be double the fees set out in Schedule C.
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