The Offer to Settle (Form 14A) and the double-costs rule

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The answer

An Offer to Settle (Form 14A) is a written offer to end the case on set terms. If the other side refuses your offer and you do better at trial, the court can double your costs.

How the costs rule works

• Plaintiff: if the judgment is as good as your offer or better, the court can award up to double costs.
• Defendant: if the judgment is as low as your offer or lower, the court can award you up to double costs from the offer date.
• Self-represented and you beat your offer? The court can add up to $1,500.
• Conditions: serve the offer at least 7 days before trial. Do not withdraw it, and do not let it expire before trial.

What to do

1. Decide the real number you can accept. Do this before the settlement conference.
2. Fill in Form 14A. State the full terms: the amount, who pays, and by what date.
3. Serve the offer on the other party. Keep proof of service.
4. Do not file an unaccepted offer. The trial judge must not see it before judgment.
5. For the costs effect, serve the offer at least 7 days before the trial date.
6. After the judgment, show the judge the offer and ask for double costs.

An example

You claim $20,000. You serve an offer for $15,000, 3 weeks before trial. The defendant refuses. The judgment is $17,000. You beat your offer. The court can double your costs, and can add up to $1,500 if you are self-represented.

Deadlines and fees

• An offer costs $0. You serve it; you do not file it.
• Serve at least 7 days before trial for the costs effect.
• The costs award still sits under the 15% cap, except as a penalty.

Common mistakes

• Do not file an unaccepted offer, and do not show it to the trial judge.
• Offer only terms you truly accept. The other side can say yes.
• Do not serve the offer 6 days before trial. The costs effect needs 7.
• Do not lose the proof of service. You must prove the offer and its date at the costs stage.

When to get a lawyer

Get legal advice to set the offer amount in a hard case. Legal services provided by Mithril Law — Jonathan Kleiman, licensed Ontario lawyer.

Free tools

• Check if your claim is worth it: /check
• Write a demand letter: /demand-letter
• Fill in your court forms: /build/7a
• Calculate your deadlines: /calculators/deadlines