THE IMPORTANCE OF CLAIMANT PART 36 OFFERS

Broadhurst & Anor v Tan & Anor (see our Case law page for the full judgment)

Summary

This is a case which confirms that in cases which proceed under a fixed costs scheme, where the Claimant succeeds in beating its own Part 36 offer, its costs are not limited by virtue of Part 45 (fixed costs scales).

The Court found a conflict between the rules in that Part 45 CPR provides for fixed costs whereas Part 36 provides for costs to be assessed (not fixed).

The case becomes relevant only when a Claimant achieves a result which is better than the one it offered to accept by way of Part 36 offer.

Conclusion

This case emphasises the need for Claimants representatives to make a Part 36 offer as the benefits of doing so can be sizeable (and the potential risk of not doing so is yet to be seen). It also means that when you do beat your own Part 36 offer you can instruct us to draft a healthy looking, non-fixed, Bill of costs.