Federal Courts Rules (SOR/98-106)

Marginal note:How security to be given

418. Where a person is required under these Rules or an Act of Parliament to give security for costs or for any other purpose, unless otherwise ordered by the Court or required by that Act, the person may do so

• (a) by paying the required amount into court; or

• (b) by filing a bond for the required amount that has been approved by an order of the Court.

Marginal note:Application to other proceedings

419. Rules 420 and 421 apply, with such modifications as are necessary, to parties bringing and defending counterclaims and third party claims, to applicants and respondents in an application and to appellants and respondents in an appeal.

Marginal note:Consequences of failure to accept plaintiff’s offer

• 420. (1) Unless otherwise ordered by the Court and subject to subsection (3), where a plaintiff makes a written offer to settle and obtains a judgment as favourable or more favourable than the terms of the offer to settle, the plaintiff is entitled to party-and-party costs to the date of service of the offer and costs calculated at double that rate, but not double disbursements, after that date.

• Marginal note:Consequences of failure to accept defendant’s offer

  (2) Unless otherwise ordered by the Court and subject to subsection (3), where a defendant makes a written offer to settle,

  • (a) if the plaintiff obtains a judgment less favourable than the terms of the offer to settle, the plaintiff is entitled to party-and-party costs to the date of service of the offer and the defendant shall be entitled to costs calculated at double that rate, but not double disbursements, from that date to the date of judgment; or

  • (b) if the plaintiff fails to obtain judgment, the defendant is entitled to party-and-party costs to the date of the service of the offer and to costs calculated at double that rate, but not double disbursements, from that date to the date of judgment.

• Marginal note:Conditions

  (3) Subsections (1) and (2) do not apply unless the offer to settle

  • (a) is made at least 14 days before the commencement of the hearing or trial; and

  • (b) is not withdrawn and does not expire before the commencement of the hearing or trial.

Marginal note:Offers without costs

• 420.1 (1) In circumstances where a written offer to settle does not provide for the settlement of the issue of costs, if a party requests the Court to consider rule 420, the Court, in ascertaining whether the judgment granted is more or less favourable than the offer to settle, shall not have regard to costs awarded in the judgment or that would otherwise be awarded.

• Marginal note:Application to court

  (2) For greater certainty, if a written offer to settle that does not provide for the settlement of the issue of costs is accepted, a party to the offer may apply to the Court for an order determining costs.