Dearling v Foregate Developments (Chester) Ltd.

Dearling v Foregate Developments (Chester) Ltd.

In the absence of a clear determination on the merits and where the settlement figure was reached on commercial grounds at the court's behest, the fallback position of no order as to costs after the relevant Part 36 offer should apply. The judge erred in ordering the defendant to pay all the claimant's costs; costs should only be awarded up to the date for acceptance of the defendant's Part 36 offer.

Parties
Claimant/respondent: Keith Murray Dearling; Defendant/appellant: Foregate Developments (Chester) Limited
Jurisdiction
England and Wales
Judgment Date
09 June 2003
Procedural Posture
Civil Appeal / Appeal From High Court (liverpool County Court) on Costs Orders
Outcome
Appeal allowed; cross-appeal dismissed
Legal Topics
Costs, Alternative Dispute Resolution (adr), Settlement, Part 36 Offers
Civil Procedure Contract Law Costs Alternative Dispute Resolution (adr) Settlement Part 36 Offers

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 2 Party arguments 2 Amounts and remedies 10
Sign in to unlock

Parties

Keith Murray Dearling

Claimant/respondent

Foregate Developments (Chester) Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court (liverpool County Court) on Costs Orders

Legal Issues

  1. 1 Whether the judge erred in his order as to costs following settlement without trial
  2. 2 Whether the claimant was entitled to the costs of the ADR process
  3. 3 Proper application of principles for costs where proceedings settle without trial

Ratio Decidendi

In the absence of a clear determination on the merits and where the settlement figure was reached on commercial grounds at the court's behest, the fallback position of no order as to costs after the relevant Part 36 offer should apply. The judge erred in ordering the defendant to pay all the claimant's costs; costs should only be awarded up to the date for acceptance of the defendant's Part 36 offer.

Court Disposition

Appeal allowed; cross-appeal dismissed

Orders

  • Defendant to pay claimant's costs up to 3 June 2002 (the time for accepting the 13 May 2002 Part 36 offer)
  • No order as to costs thereafter