FIXED COSTS AND CLAIMANT'S PART 36 OFFERS
This case must be read with the Court of decision in Broadhurst -v- Tan  EWCA Civ 94. This effectively overrides this decision. Fixed costs do not apply when indemnity costs are ordered.
There is a report, helpfully put online by Sara Robson barrister, of the judgment of His Honour Judge McKenna in Dixon -v- Bennett (Birmingham County Court 23rd December 2015).
- The fixed costs recoverable under the Portal continue to apply even when costs are ordered on an indemnity basis.
- A claimant’s Part 36 offer has very limited effect in relation to costs.
- The offer will, however, still impact upon interest and the additional 10% in damages.
The claimant brought an action which was subject to the Pre-action Protocol for Law Value Personal Injury claims. The claimant made a Part 36 offer of of £5,421.28 and was awarded damages in the higher sum of £5,821.84.
THE DISTRICT JUDGE’S DECISION ON COSTS
The District Judge held that the fact that the offer was beaten and indemnity costs had to be paid did not entitle the claimant to non fixed Part 7 costs.