In November last year we reported on the case of Finnegan v Frank Spiers  EWHC 3064 (Ch) in which Mr Justice Birss held that there is no jurisdiction to award a payment on account under CPR 44.2(8) in circumstances where a claim is settled by way of acceptance of a Part 36 Offer.
This was an appeal against the decision of Master McCloud not to award the claimant a 10% ‘additional amount’ under CPR 36.17(4) on grounds that it would be disproportionate and unjust to do so where the claimant had beaten its own offer by just £7,000 on a bill assessed at £431,813.05.
The Court of Appeal has dismissed a challenge to the validity of a Part 36 Offer on grounds that i) it was made in respect of both a claim and a proposed counterclaim which had yet to be pleaded; and it ii) contained provision for interest to accrue at a particular rate after the expiry of the “Relevant Period”
Part 36 did not preclude a judge from making an issue-based or proportionate costs order where a claimant had only succeeded on some issues. However, the constraints of Part 36 meant that it would be reasonable to deprive a claimant all or part of their costs only if it would be unjust to order otherwise, having regard to “all the circumstances of the case”