No CPR rule has kept the lawyers and the rule drafters as busy as Part 36. 25 years ago, only a defendant could make an offer to settle which had deemed costs consequences if it was accepted, or was not beaten by the plaintiff (as the claimant then was) if the matter went to trial. That was by making a payment into court under Order 22 of the Rules of the Supreme Court (RSC). There was nothing in the RSC which permitted a plaintiff to make an offer which had deemed costs consequences if the defendant refused to accept it when that would have been the correct thing to do.
Part 36: the melancholy side of the coin
The case of Mullaraj v Secretary of State for the Home Department has provided further judicial comment that a paying party should not expect to obtain a different order for costs at the conclusion of a provisional assessment hearing simply by relying on CPR 47.20(3)(b) when the paying party hasn’t beaten any previous offers made.
Should Priority Agreements get more priority?
Over time, due to the rapid growth in the availability of litigation finance, more and more cases involve a minimum of three stakeholders: a litigant, a funder and an after the event (ATE) insurer. A pre-condition of any litigation finance arrangement is that ATE insurance is purchased by the claimant, in the claimant’s own name; that by necessity creates a three-party relationship. Of course, where the legal representative is acting on a conditional fee agreement (CFA) or damages-based agreement (DBA), that makes at least four stakeholders (or five if counsel is acting on any form of contingency agreement).