Stokes Pension Fund v Western Power Distribution (South West) Plc

Stokes Pension Fund v Western Power Distribution (South West) Plc

A defendant's clear, genuine, and serious pre-action offer to settle a money claim, where the defendant is good for the money, should be treated as having the same effect as a payment into court for costs purposes, even if not followed by a payment into court and even if later withdrawn, unless there are factors justifying a different result. The claimants should have accepted the offer within 21 days, and their failure to do so means they are liable for the defendant's costs after that period.

Parties
Claimant/respondent: The Trustees of Stokes Pension Fund; Defendant/respondent: Western Power Distribution (South West) Plc
Jurisdiction
England and Wales
Judgment Date
11 July 2005
Procedural Posture
Civil Appeal / Appeal From Bristol County Court Decision on Costs
Outcome
Appeal allowed
Legal Topics
Offers to Settle, Part 36 Offers, Calderbank Offers, Costs Consequences, Exaggeration of Claims
Civil Procedure Costs Offers to Settle Part 36 Offers Calderbank Offers Costs Consequences Exaggeration of Claims

Case Brief

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Parties

The Trustees of Stokes Pension Fund

Claimant/respondent

Western Power Distribution (South West) Plc

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From Bristol County Court Decision on Costs

Legal Issues

  1. 1 Whether a defendant's offer to settle not followed by a payment into court should have the same costs consequences as a Part 36 payment
  2. 2 Whether withdrawal of the offer affects its costs consequences
  3. 3 Whether the claimants' exaggeration of the claim justified a reduction in costs

Ratio Decidendi

A defendant's clear, genuine, and serious pre-action offer to settle a money claim, where the defendant is good for the money, should be treated as having the same effect as a payment into court for costs purposes, even if not followed by a payment into court and even if later withdrawn, unless there are factors justifying a different result. The claimants should have accepted the offer within 21 days, and their failure to do so means they are liable for the defendant's costs after that period.

Court Disposition

Appeal allowed

Orders

  • Claimants liable for defendant’s costs incurred after expiry of 21 days from 26 February 2002
  • Defendant liable for claimants’ costs (if any) incurred before that date