Tag: Indemnity Costs

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Claimant wins battle over Defendant’s late acceptance of Part 36 offer in phone hacking claim

In Pallett v MGN Ltd, a case concerning the newspaper phone hacking scandal, the High Court orders the Defendant, owner of the Mirror newspaper, to pay all of the Claimant’s costs of the proceedings, despite arguments that they had accepted the settlement offer outside of the 21 day relevant period under CPR Part 36.

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High Court issues costs penalty for failure to resolve issues with ADR

This latest High Court case again demonstrates the pitfalls for litigants who unreasonably refuse to engage in Alternative Dispute Resolution such as mediation to resolve issues. Parties that fail to do so risk be punished by the court when it comes to costs.

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Claimant’s Part 36 offer of 99.7% was genuine offer to settle proceedings

In a multi million pound breach of contract case, where there was no substantive defence to the claim and the Defendant accepted summary judgment and liability for the Claimant’s costs, the High Court held that a Claimant’s Part 36 offer to accept only 0.3% less than the full sum being claimed was a “genuine offer to settle” under CPR 36.17(5)(e).

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High Court: Costs penalties for a failure to engage in mediation

If a party completely foregoes mediation will that party be punished in costs? The High Court judgment highlights that although the court cannot compel parties to mediate, an unreasonable refusal to do so is likely to result in costs penalties for a defaulting party. The costs risks of unreasonably refusing to mediate or not responding to a mediation proposal may be severe.

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The Cost of an Unreasonable Refusal to Mediate

All solicitors have a duty to advise their clients about alternative dispute resolution (ADR), including mediation. Along with the ADR requirements in the pre-action protocols, the CPR and court schemes, overall, mediation is an option that must be considered by parties both before and during litigation (and a failure to do so can lead to costs penalties).

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Court of Appeal: Indemnity costs order for “speculative” claims are not constrained by approved costs budget

In Lejonvarn v Burgess and Burgess [2020] EWCA Civ 114, the Court of Appeal have confirmed that the High Court was wrong not to punish the claimants who pursued…