N J Rickard Limited v Holloway & Anor

N J Rickard Limited v Holloway & Anor

The 'drop hands' offer did not comply with the mandatory requirements of Part 36 of the CPR and therefore did not attract the automatic costs consequences of that rule. The District Judge erred in treating it as a valid Part 36 offer and in awarding indemnity costs. Applying CPR Part 44.2 and considering all the circumstances, including the conduct of the parties, the outcome of the claims and counterclaims, and the failure to mediate, the appropriate order was that there be no order as to costs between the landlord and tenants on the claims and counterclaims. The tenants were, however, to pay £1,000 each to Mr Rickard and Mr Flamank for their costs.

Parties
Claimant/respondent: NJ Rickard Limited; Defendant/appellant: Paul Holloway; Defendant/appellant: Laraine Holloway
Jurisdiction
England and Wales
Judgment Date
03 November 2015
Procedural Posture
Civil Appeal / Appeal From County Court (costs Order)
Outcome
Appeal allowed
Legal Topics
Costs, Part 36 Offers, Counterclaims, Breach of Covenant for Quiet Enjoyment, Duty to Repair

Case Brief

Summary, issues, holding and outcome

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Parties

NJ Rickard Limited

Claimant/respondent

Paul Holloway

Defendant/appellant

Laraine Holloway

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From County Court (costs Order)

  1. 1 Whether the 'drop hands' offer was a valid Part 36 offer under the CPR
  2. 2 Whether the District Judge erred in making the costs orders, including indemnity costs, in favour of the landlord
  3. 3 What the appropriate order as to costs should have been

Ratio Decidendi

The 'drop hands' offer did not comply with the mandatory requirements of Part 36 of the CPR and therefore did not attract the automatic costs consequences of that rule. The District Judge erred in treating it as a valid Part 36 offer and in awarding indemnity costs. Applying CPR Part 44.2 and considering all the circumstances, including the conduct of the parties, the outcome of the claims and counterclaims, and the failure to mediate, the appropriate order was that there be no order as to costs between the landlord and tenants on the claims and counterclaims. The tenants were, however, to pay £1,000 each to Mr Rickard and Mr Flamank for their costs.

Court Disposition

Appeal allowed

Orders

  • No order as to costs between landlord and tenants on claim and counterclaim
  • Tenants to pay £1,000 each to Mr Rickard and Mr Flamank for their costs, with liberty to Mr Rickard to apply for a different figure (not encouraged)