REUTERS | Vijay Mathur

“It is a sad fact that the provisions of Part 36, intended to promote settlement of litigation, and thus to minimise costs, have themselves been productive of numerous appeals to this Court, and in consequence substantial costs in what is effectively satellite litigation.”

This quote is from the beginning of Sir Stanley Burnton’s judgment in the recent case of Webb v Liverpool Women’s NHS Foundation Trust, where the Court of Appeal had to consider whether a claimant who had beaten her own Part 36 offer should be deprived of some of her costs because she was only successful in respect of one of her two allegations. Although it is lamentable that a great deal of costs have been incurred by litigants simply on the meaning of Part 36, this case has clarified some of the issues and will hopefully prevent more satellite litigation in this area of the law. Continue reading

REUTERS | Christian Charisius

April not only brings out the joys of spring for many of us, but, for lawyers, it often means another raft of civil procedure amendments and changes to get used to. April 2016 was no different for the commercial litigator, and my earlier post covered the significant enforcement procedural changes that are now in force. However, it was also quite a significant month for the insolvency professional. Continue reading

REUTERS | Rick Wilking

In Finland, driving fines are proportionate to the wealth of the offender. Thus a rich boy-racer caught speeding in his father’s Ferrari will pay a higher fine than a down-at-heel driver who committed the same offence. Better-off speeders will sometimes pay fines of tens, even hundreds, of thousands of euros.

The principle underpinning this policy, and found in many European countries, is simple: a penalty is only really a penalty if it appreciably punishes and deters the transgressor.

Does the same principle apply to “penalty” clauses in commercial contracts? No, held Snowden J (obiter) in Hayfin Opal Luxco 3 S.A.R.L. v Windermere VII CMBS plc. Continue reading