Part 36 offers

Service formalities must be complied with in accepting Part 36 offer

A recent decision demonstrates that a Part 36 offer to settle will not be validly accepted unless written notice has been served on the offeror in accordance with the usual service rules under Part 6 of the Civil Procedure Rules: Sutton Jigsaw … Continue reading

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Reliance on term of “without prejudice” offer waived privilege in rest of offer

In considering costs issues following judgment in a complex patent action, the High Court had to determine whether it was appropriate for the court to be shown a Part 36 offer that had been made in relation to the current action as well as a … Continue reading

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Failure to comply with pre-action protocol justified departure from usual Part 36 costs consequences

The High Court has held that a defendant who accepted a Part 36 offer almost a year late should be awarded its costs for the period of delay, reversing the normal costs rule, because of the claimant’s failure to comply … Continue reading

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Part 36 offers in context of counterclaims and negative declarations

A recent High Court judgment highlights the scope for confusion in applying Part 36 in a case where the formal roles of claimant and defendant do not reflect the reality of who is seeking a (greater) remedy in financial terms: The … Continue reading

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Costs awarded against claimant who failed to beat non-Part 36 offer

A recent High Court decision illustrates that a defendant’s offer to settle made outside the Part 36 regime may lead to a similar result as a Part 36 offer, although it will not carry automatic costs consequences: Brit Inns Limited … Continue reading

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Indemnity costs against defendant who failed to accept Part 36 offer that was withdrawn before trial

A recent decision illustrates that the court may award indemnity costs to penalise unreasonable behaviour, including an unreasonable failure to accept a settlement offer: Walter Lilly & Company Limited v MacKay [2012] EWHC 1972 (TCC). That includes a Part 36 … Continue reading

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Part 36 offers will trump “qualified one-way costs shifting” in personal injury claims

The government has clarified certain aspects of its plans for qualified one-way costs shifting (QOCS), which will apply for personal injury claims from April 2013. QOCS means that personal injury claimants will be awarded their costs if the claim is successful but will not generally have to pay the … Continue reading

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Part 36 offers: extra 10% of damages for claimants’ offers to be tapered off for higher value claims

The government announced on Tuesday (10 July) that the planned additional sanction to reward claimants’ Part 36 offers will be subject to a tapering off mechanism for higher value claims. The Legal Aid, Sentencing and Punishment of Offenders Act 2012, which … Continue reading

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Part 36: difficulties in split trials

A recent High Court decision has highlighted difficulties arising from the application of Part 36 in the context of split trials, or trials of preliminary issues: Ted Baker Plc v Axa Insurance UK Plc [2012] EWHC 1779 (Comm). Under CPR 36.13 the … Continue reading

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Costs consequences of settlement offers made outside Part 36

The Court of Appeal has held that the court was not entitled to apply the Part 36 costs consequences “by analogy” to award indemnity costs and enhanced interest where a party failed to beat an opponent’s settlement offer which was … Continue reading

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