Problem 22- Offers to settle

You act on behalf of Qui Li, a dentist that received an electric shock whilst using a defective hand piece/drill manufactured by Acme Pty Ltd. On behalf of Qui Li you commenced proceedings in the Queensland District Court, seeking $180,000.00 in damages, plus interest and costs.

On 1 May 2017, Acme Pty Ltd delivered a formal offer to settle pursuant to UCPR Chapter 9, Part 5, offering to pay the sum of $70,000.00. Qui Li was insulted by this low offer and instructed you to continue.

Acme Pty Ltd made an oral offer to settle two months later, on 1 July 2017, in the amount of $75,000.00. You tried your hardest to convince Qui Li to settle, but he refused, and you rejected this settlement offer in writing.

On Christmas Eve, 2017, Acme Pty Ltd delivered what you hoped would be an early Christmas present, resulting in great happiness and peace in the New Year for you. The offer was in writing, pursuant to Chapter 9, Part 5 of the UCPR. This offer was for $100,000.00. Feeling in the Christmas mood, Qui Li initially accepted this offer, but changed his mind just after the New Year and proceeded to trial.

At trial, on 1 June 2018, Qui Li was awarded damages for his injuries in the amount of $100,000.00. This amount was reduced by 20% for contributory negligence.

What is the appropriate order as to costs and what factors must the court consider?