Practical Law

In the 14 June 2019 blog entitled Part 36 offers in Part 47 Assessments: all clear now or still confused, the case of Horne v Prescot was considered in the context of the validity of Part 36 offers in detailed assessment proceedings. In Horne, Nicol J had decided that an offer to accept the sum of £82,000 “in full and final settlement of her [the claimant’s] claim for costs exclusive of interest and exclusive of the costs of assessment“(emphasis added) was a valid offer under Part 36. It followed that when the offer was rejected and the costs were assessed at £91,807, the claimant became entitled to the benefits available under CPR 36.17(4)(a)-(d). These included an additional amount of 10% of the assessed costs, enhanced interest at up to 10% over base rate on both the assessed costs and the costs of assessment, with the latter to be paid on the indemnity basis. Continue reading →

Fixed costs under CPR 45. The upside: the winning lawyer recovers costs in a fixed amount depending upon the stage at which the case has been completed, whether or not work to that value has been done. The downside: the lawyer does not recover any extra costs for doing work which the fixed costs do not cover, so that case will have been run at a loss (note that there is a “safety valve” under CPR 45.29J which allows sums in excess of fixed costs to be recovered in “exceptional circumstances”, but it is an uphill struggle to persuade the court to do so). However, where the fixed costs regime does not apply because the case is proceeding in the multi-track, the party who wins with costs is entitled to have them assessed by the court if they cannot be agreed: see CPR 47. In those circumstances, the sky is the limit, provided those costs are reasonable, necessary and if payable on the standard basis, also proportionate. Continue reading →