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Ontario|Small Claims CourtBefore Going to Trial 551 Offers to settle Most lawsuits are settled by the people involved before the lawsuit goes to trial. If you are involved in a lawsuit, you may want to try to settle the matter in order to save time and money. Sometimes there are rules and penalties that may apply if the lawsuit has to be decided by a judge.
- What is an offer to settle?
An offer to settle usually includes a statement by the plaintiff or defendant about how they are willing to resolve the lawsuit without going to trial. An offer to settle can be made by anyone involved in a lawsuit at any time. An offer to settle can be withdrawn as long as it has not been accepted by the other side. If you make an offer to settle, and the other side accepts it, then a settlement agreement has been made. If someone makes you a reasonable offer, and you do not accept it, you may have to pay extra costs after a trial. The consequences of not settling will depend on who made the offer and whether the amount awarded by the judge is more or less than the offer.
- What are the consequences if an offer to settle is turned down?
If the plaintiff makes an offer at least seven days before the trial, and the defendant rejects it, but the judge awards the plaintiff an amount that is as good as or better than the plaintiff's offer, the defendant may have to pay two times the plaintiff's costs of the lawsuit.
If the situation is reversed, and a plaintiff does not accept a reasonable offer to settle, the plaintiff may have to pay two times the defendant's costs of the lawsuit from the day the offer was made.
- How to prepare a settlement agreement
If you make an offer to settle it should be in writing and should include the date, what you are offering, how long the offer will be open for, and your signature. Always keep a copy of any offer you make or receive. If you want to accept an offer made by the other party, you should do so in writing and you should keep a copy of the signed offer. Any final agreement to settle a lawsuit should be in writing and signed by everyone involved.
If you want to settle a lawsuit, you may want to consult a lawyer about your legal rights and obligations.
THE TRIAL
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