FIXED COSTS AND PART 36: THE 35% GAIN IF A CLAIMANT BEATS THEIR OWN OFFER

The new rules introduce a fixed percentage as an “additional liability” in cases where a case is subject to fixed costs and a case has Part 36 costs consequences.  Where a claimant has beaten their own offer and, normally, an award for indemnity costs would be ordered, the claimant will be entitled to an additional 35% in costs.

THE NEW RULE

The new rule can be found under the amendments to Part 36.

 

(3) Where rule 36.17(1)(b) applies, the claimant is entitled to—
(a) the fixed costs in Table 12, Table 14 or Table 15 in Practice Direction 45 for the
stage applicable at the date of judgment; and
(b) any applicable additional fixed costs allowed under Section I, Section VI, Section
VII or Section VIII incurred in any period for which costs are payable to them.
(4) Where the court makes an order pursuant to rule 36.17(4), instead of costs awarded on
the indemnity basis under rule 36.17(4)(b), the claimant is entitled to additional costs in
accordance with paragraph (5).
(5) The additional costs are an amount equivalent to 35% of the difference between the
fixed costs for—
(a) the stage applicable when the relevant period expires; and
(b) the stage applicable at the date of judgment,
to which the claimant is entitled under paragraph (3)(a) and (b).