In a Case Filed in the Federal Court, Gamma Inc

question 28

Essay

In a case filed in the Federal Court, Gamma Inc sued Delta Ltd for breach of contract. Gamma claimed damages of $500 000. Although Delta denied liability, it formally offered to settle the claim for $200 000. Gamma rejected that offer, but in response, it formally offered to settle it claim for $400 000. Delta rejected that offer. The case has now gone to trial. Explain what order the judge will likely make with respect to costs if (a) Delta is held liable for $450 000, (b) Delta is held liable for $100 000, or (c) Delta is held not liable?

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Definitions:

Gasoline Tax

A tax imposed on the sale of gasoline, often used by governments to raise revenue and discourage excessive fuel consumption.

Mortgage-Interest Deduction

A tax deduction for mortgage interest paid on the first $750,000 of mortgage debt, available to U.S. taxpayers.

Horizontal Equity

The principle that individuals with similar financial situations should be treated equally by the taxation system.

Egalitarian

Pertaining to or believing in the principle that all people are equal and deserve equal rights and opportunities.