Pan v. Dong
An Dong Pan
Law Firm / Organization
Self Represented
Jia Hao Dong
Law Firm / Organization
Unrepresented
Xu Dong Liu
Law Firm / Organization
Unrepresented
Jing Cai
Law Firm / Organization
Bojm, Funt & Gibbons LLP
Lawyer(s)

Jeffrey P. Scouten

Law Firm / Organization
Direction Legal LLP
Lawyer(s)

David Sue-A-Quan

Background:
The dispute arose from a failed currency exchange transaction involving Pan, who acted on behalf of a client, and Dong and Liu. Both Pan and Cai suffered financial losses due to the actions of Dong and Liu. Pan pursued legal action against Cai, seeking to recover $431,000. Despite Pan's efforts, the court noted that Cai had continued her involvement with Dong and Liu even after incurring losses.

Key Issues:
The central legal issue concerned the application of Rule 9-1 of the Supreme Court Civil Rules, specifically relating to the costs and the implications of formal offers to settle. Cai made a formal offer to Pan to settle the matter for $50,000, which Pan declined.

Formal Offer and Costs:
Cai’s formal offer to settle, made before trial, was for $50,000. The court found that Pan, by not accepting the offer, failed to mitigate his risks, as the case was "all-or-nothing." Cai was deemed the substantially successful party.

Court's Decision:
Justice Hardwick ordered Pan to pay Cai’s costs under Scale B of the Supreme Court Civil Rules up to January 7, 2024, and double costs from January 8, 2024, onwards, penalizing Pan for not accepting the reasonable settlement offer.

Outcome:
Pan was liable for the total costs Cai incurred during the proceedings, with the amount doubled after the offer date, emphasizing the importance of accepting reasonable settlement offers in civil litigation. Financial terms were not specified.

Supreme Court of British Columbia
S2010806
Civil litigation
Defendant