182Costs incurred after offer of compromise not accepted

182 Costs incurred after offer of compromise not accepted (a) a party to a claim for personal injury damages makes an offer of compromise on the claim; and (b) the offer is expressed to be made for this section; and (c) the offer is not accepted; and (d) the court decides or makes an order or award on the claim that is no less favourable to the party than the terms of the offer. (2) Section 181 (Maximum costs for claims of $50 000 or less) does not prevent the awarding of costs against another party, to be assessed on an indemnity basis, for legal services provided after the offer is made. (3) A regulation may— (a) require lawyers to give their clients information about the effect of this section if an offer of compromise is not accepted; and (b) make provision in relation to the requirement, including, for example, what information must be given and how and when it must be given. Part 14.1 Maximum costs for certain personal injury damages claims (4) If the court considers that— (a) a lawyer has contravened a regulation made for this section; and (b) the lawyer’s client has incurred an increased liability for costs for not accepting an offer of compromise; the court may (on its own initiative or on application by the client) make either or both of the orders mentioned in subsection (5). (5) The orders are— (a) an order directing the lawyer to repay to the client (or to pay) all or part of the increased costs that the client has been ordered to pay to another party; and (b) an order directing the lawyer to indemnify a party other than the client against all or part of the costs payable by the party for legal services provided after the offer was made. (6) A regulation may prohibit or restrict the making of offers of compromise otherwise than under this section.