Nash (t/a Elite Carcraft) v Daniel & Anor [2002] EWCA Civ 1146 (9 July 2002)

Nash (t/a Elite Carcraft) v Daniel & Anor [2002] EWCA Civ 1146 (9 July 2002)

The judge below was seriously misled regarding the existence and effect of a valid Part 36 offer, and the order for indemnity costs was made on a false basis. The usual order is for costs to be paid on the standard basis unless there is conduct justifying indemnity costs. In this case, there was no sufficient justification to depart from the standard basis, and the appeal was allowed.

Citation
[2002] EWCA Civ 1146
Parties
Claimant/respondent: Colin David Nash T/A Elite Carcraft; Defendant/appellant: Stan Daniel; Defendant/appellant: Erra Ltd
Jurisdiction
England and Wales
Judgment Date
09 July 2002
Procedural Posture
Civil Appeal / Appeal From Wolverhampton County Court Decision on Costs
Outcome
Appeal allowed
Legal Topics
Costs Assessment, Indemnity Costs, Standard Costs, Part 36 Offers, Misleading the Court, Exercise of Judicial Discretion
Civil Procedure Contract Law Costs Assessment Indemnity Costs Standard Costs Part 36 Offers Misleading the Court Exercise of Judicial Discretion

Case Brief

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Parties

Colin David Nash T/A Elite Carcraft

Claimant/respondent

Stan Daniel

Defendant/appellant

Erra Ltd

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Wolverhampton County Court Decision on Costs

Legal Issues

  1. 1 Whether the judge was misled regarding the existence and effect of a valid Part 36 offer
  2. 2 Whether indemnity costs should have been awarded instead of standard costs
  3. 3 Whether the conduct of the parties justified indemnity costs

Ratio Decidendi

The judge below was seriously misled regarding the existence and effect of a valid Part 36 offer, and the order for indemnity costs was made on a false basis. The usual order is for costs to be paid on the standard basis unless there is conduct justifying indemnity costs. In this case, there was no sufficient justification to depart from the standard basis, and the appeal was allowed.

Court Disposition

Appeal allowed

Orders

  • Costs below to be assessed on the standard basis
  • First Defendant's costs of the appeal to be paid by the Claimant