Aspects of costs and enforcement Flashcards
How long does the defendant have to pay costs after the acceptance of a part 36 offer?
14 days
How long does the claimant have to accept a part 36 offer (the relevant period)?
21 days (can have late acceptance but is penalised
What happens if the claimant accepts a part 36 offer after the relevant period?
They can accept the offer up until the start of trial but:
The defendant will pay the claimant’s costs up to the end of the relevant period
The claimant will pay the defendant’s costs from the end of the relevant period until the date of acceptance
What happens if a part-36 offer not accepted by which turns out to be a good offer?
The judge will decide whether it is just to penalise for non-acceptance, taking into account:
the terms, when it was made (how close to trial), what information was available at the time & conduct
What happens if the defendant declines a part 36 offer which was the same or advantageous to what the claimant was awarded? (claimant wins)
They will pay extra damages:
For damages up to £500,000 the defendant pays an additional 10%
For damages over £500,000 but below £1million 10% of the first £500,000 and thereafter 5% up to a sum of £75,000.
Interest on damages:
From the day after the relevant period the % rate of interest increases to a rate not exceeding 10% above base rate
Paying the claimants costs:
Multi-track: Will have to pay on a indemnity basis from after the relevant period
Fast and intermediate track: This is fixed costs basis but the claimant gets an amount equivalent to 35% of the difference between the end of the relevant period until the end of judgement
Interest up to 10% above base rate will be awarded on costs (general rule is there is no interest on costs)
What happens if the claimant declines the defendants part 36 offer and is awarded the same or something less advantageous? (claimant wins but doesn’t beat offer)
The defendant pays the claimant’s costs on a standard basis (multi track) or fixed costs (fast & intermediate) up until the end of the relevant period.
The claimant pays the defendant’s costs on the standard basis or fixed costs from the end of the relevant period until judgement.
Interest on the costs (usually 1 or 2% above base rate)
What happens if the claimant does not accept the defendant’s part 36 offer and they loose at trial?
General rule is the claimant would pay the defendant’s costs.
From the day after the relevant period they pay interest usually at 1 or 2% above base rate.
What are the formalities for a part 36 offer?
Must:
Be in writing
Make clear it is a part 36 offer
Specify the relevant period (not less than 21 days)
State whether it relates to the whole claim or part
What is paying costs on the standard basis?
The costs must be proportionate to the matters of the issue.
They are proportionate if they bear a reasonable relationship to the sums in issue, complexity, additional work, wider factors
Any doubt is in favour of the paying party
Disproportionate costs may be disallowed even if they were reasonably incurred & reasonable in amount
What is paying costs on an indemnity basis?
Costs must be:
Reasonably incurred & reasonable in amount
Any benefit of the doubt is given to the receiving party
