---
title: "Check a Calderbank letter against the factors for an indemnity costs application"
url: "https://ailawframework.com/practice/commercial-litigation-and-dispute-resolution/check-a-calderbank-letter-against-the-factors-for-an-indemnity-costs-app"
type: "task"
site: "AI Law Framework"
id: "A5-LT20261023-2"
practice_area: "Commercial Litigation & Dispute Resolution"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-25"
---

# Check a Calderbank letter against the factors for an indemnity costs application

> From the letter, list the offer, how long it was open, whether it is inclusive of costs, and whether it is marked without prejudice except as to costs and foreshadows an indemnity application.…

Canonical page: https://ailawframework.com/practice/commercial-litigation-and-dispute-resolution/check-a-calderbank-letter-against-the-factors-for-an-indemnity-costs-app  
Last reviewed: 2026-10-25

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Commercial Litigation & Dispute Resolution](https://ailawframework.com/practice/commercial-litigation-and-dispute-resolution.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the letter, list the offer, how long it was open, whether it is inclusive of costs, and whether it is marked without prejudice except as to costs and foreshadows an indemnity application. The tool does not decide whether rejection was unreasonable. |
| What the lawyer must review | The lawyer decides whether rejection was unreasonable, and whether to rely on the letter. Check a formal offer of compromise against the rules, not against these factors. The lawyer settles the letter before it is sent. Keep the letter out of a public AI tool while it is confidential. |
| Written for / versions | 3 jurisdiction versions below |

## Checking plan

**Calderbank factors**

The lawyer decides whether rejection was unreasonable. The tool lists the letter against the six factors in the opened article.

- What the AI does: From the letter, list the offer, how long it was open, whether it is inclusive of costs, and whether it is marked without prejudice except as to costs and foreshadows an indemnity application. The tool does not decide whether rejection was unreasonable.
- What the lawyer does: The lawyer decides whether rejection was unreasonable, and whether to rely on the letter. A formal offer of compromise is checked against the rules, not against these factors. The lawyer settles the letter before it is sent. Keep the letter out of a public AI tool while it is confidential.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Find the marking without prejudice except as to costs, and the statement that indemnity costs will be sought.
2. Record how long the letter was open, and whether the time was long enough to consider it.
3. Do not treat a letter that is inclusive of costs as a formal offer of compromise.
4. If the letter is a formal offer, stop and check it against the offer rules instead.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [Law Society Journal, settlement offers and indemnity costs (4 October 2022)](https://lsj.com.au/articles/what-is-a-calderbank-offer-settlement-offers-and-indemnity-costs/) (checked 2026-10-23)
- [Uniform Civil Procedure Rules 2005 (NSW) r 20.26](https://www.austlii.edu.au/au/legis/nsw/consol_reg/ucpr2005305/s20.26.html) (checked 2026-10-23)
- [Supreme Court (General Civil Procedure) Rules 2025 (Vic) r 26.03](https://www.austlii.edu.au/au/legis/vic/consol_reg/sccpr2025433/s26.03.html) (checked 2026-10-23)
- [Supreme Court (General Civil Procedure) Rules 2025 (Vic) r 26.08](https://www.austlii.edu.au/au/legis/vic/consol_reg/sccpr2025433/s26.08.html) (checked 2026-10-23)
- [Uniform Civil Procedure Rules 1999 (Qld) rr 353 and 355](https://classic.austlii.edu.au/au/legis/qld/consol_reg/ucpr1999305/s353.html) (checked 2026-10-23)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Reply to a Calderbank offer in a personal injury claim](https://ailawframework.com/precedents/personal-injury-and-compensation/reply-to-calderbank-offer.md) | Letter | Yellow | A reply to a Calderbank offer in a Victorian, Queensland or New South Wales personal injury claim. It identifies unclear terms and the time allowed, and in Victoria it uses the Hazeldene list only. |

Signed-in accounts can read the full text of each one.

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [New South Wales](https://ailawframework.com/practice/commercial-litigation-and-dispute-resolution/check-a-calderbank-letter-against-the-factors-for-an-indemnity-costs-app/new-south-wales.md) | Yellow |
| [Victoria](https://ailawframework.com/practice/commercial-litigation-and-dispute-resolution/check-a-calderbank-letter-against-the-factors-for-an-indemnity-costs-app/victoria.md) | Yellow |
| [Queensland](https://ailawframework.com/practice/commercial-litigation-and-dispute-resolution/check-a-calderbank-letter-against-the-factors-for-an-indemnity-costs-app/queensland.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*