Three days before the trial is due to commence, Surreal thinks that Doh stands a rather high chance of being successful. Surreal decides to make a written Calderbank offer to Doh in the amount of $500,000.

2(F).  Three days before the trial is due to commence, Surreal thinks that Doh stands a rather high chance of being successful. Surreal decides to make a written Calderbank offer to Doh in the amount of $500,000.  The offer is open for two days only.  After considering it carefully, Doh then rejects the offer. Following the trial, Doh wins against Surreal but is only awarded the sum of $200,000. Discuss the costs consequences of Doh rejecting Surreal’s offer.  What principles will the Court apply in determining those cost consequences?           

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