PHI Group Ltd v Robert West Consulting Ltd [2012] EWCA Civ 588 (10 May 2012)

PHI Group Ltd v Robert West Consulting Ltd [2012] EWCA Civ 588 (10 May 2012)

The February 2010 offer was not a valid Part 36 offer because it failed to specify a period of not less than 21 days for acceptance as required by CPR 36.2(2)(c). However, the offer remained open and was not withdrawn by the later November 2010 offers. The offer applied to all contribution issues between PHI and RWC. Since RWC failed to accept an offer more favourable than the judgment outcome, the appropriate exercise of discretion is to order RWC to pay PHI's costs of the contribution proceedings and bear its own costs.

Citation
[2012] EWCA Civ 588
Parties
Defendant Appellant: PHI Group Limited; Third Party Respondent: Robert West Consulting Limited
Jurisdiction
England and Wales
Judgment Date
10 May 2012
Procedural Posture
Appeal / Court of Appeal Judgment on Costs Order Following Trial in Technology and Construction Court
Outcome
Appeal allowed
Legal Topics
Part 36 Offers, Costs Orders, Contribution Proceedings, Settlement Offers, Discretion in Costs
Civil Procedure Construction Law Part 36 Offers Costs Orders Contribution Proceedings Settlement Offers Discretion in Costs

Case Brief

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Parties

PHI Group Limited

Defendant Appellant

Robert West Consulting Limited

Third Party Respondent

Procedural Posture

Appeal / Court of Appeal Judgment on Costs Order Following Trial in Technology and Construction Court

Legal Issues

  1. 1 Whether PHI's February 2010 offer was a valid Part 36 offer under the Civil Procedure Rules
  2. 2 Whether the February 2010 offer, if not a Part 36 offer, should have similar costs consequences
  3. 3 Whether the February 2010 offer was withdrawn by later offers

Ratio Decidendi

The February 2010 offer was not a valid Part 36 offer because it failed to specify a period of not less than 21 days for acceptance as required by CPR 36.2(2)(c). However, the offer remained open and was not withdrawn by the later November 2010 offers. The offer applied to all contribution issues between PHI and RWC. Since RWC failed to accept an offer more favourable than the judgment outcome, the appropriate exercise of discretion is to order RWC to pay PHI's costs of the contribution proceedings and bear its own costs.

Court Disposition

Appeal allowed

Orders

  • RWC to pay PHI's costs of the contribution proceedings
  • RWC to bear its own costs of the contribution proceedings