The decision of District Judge Ackroyd in Burreett -v- Mencap Ltd (14th May 2014) was reported on Lawtel earlier this week and is available on Bailli. It contains an important lesson to both defendants and claimants as to costs when a Part 36 offer is varied downwards. However it could actually tur...
This must be nonsense. How long is it going to be before it is sorted out?
Either when the rules get changed or someone takes it to appeal. Until then we all have to be mindful of the situation and only (reported) decision so far.
A lot of commentators saying that this is nonsense, but I am not sure I agree. The Claimant had received an offer of £15,000. She could have accepted the offer as originally made within the 21 day period, but elected not to. If she had, she would have been better off and costs would have been lower – you could say she should have accepted that offer. Why then should she get her costs until 21 days after expiry of the variation? I have some sympathy with her solicitors who may lose out depending on the retainer, but that is a matter between solicitor and client.
I doubt that this situation could really provide that much of a ‘headache’ to defendants. It is extremely difficult to secure an indemnity costs order pre-judgment even when an offer is accepted well out of time (and presumably on the odd occasion that circumstances alter the value of the claim up).
Surely the fact that a transcript has been prepared means tah this decision is under appeal. It may be a reported decision, but it is a decision of a DJ in a County Court.