INDEMNITY COSTS ON APPEAL AFTER PART 36 OFFER

For the second time today I express my thanks to John McQuater. This time for drawing my attention to the  Court of Appeal decision on costs in Summers -v- Bundy (11/02/2016)*  This case shows the importance of making Part 36 offers in relation to appeals. (*There is no neutral citation, the short judgment is available on Lawtel).  There is probably important work to be done on the importance of Part 36 offers and appeals.

KEY POINTS

  • The claimant beat its own Part 36 offer on appeal.
  • The defendant was ordered to pay the claimant’s costs on an indemnity basis from the date of expiry of the offer.

THE CASE

The Court of Appeal decided that the claimant was entitled to an additional 10% liability on damages, see Summers -v- Bundy [2016] EWCA Civ 126. The judge at first instance had decided that the claimant was not entitled to a 10% uplift of general damages. That decision was overturned on appeal.

Prior to appeal the claimant had made an offer to accept an additional 9% on general damages. That offer was clearly beaten at the appeal.

THE DECISION ON COSTS

  • The defendant was to pay the claimant’s costs.
  • The defendant to pay the claimant’s costs on an indemnity basis from the end of the relevant period.

The court felt it unjust to award any enhanced interest or additional amount.

RELATED POSTS ON PART 36

.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: