Rowlands & Ors v Bryn Alyn Community (Holdings) Ltd [2003] EWCA Civ 383 (24 March 2003)

Rowlands & Ors v Bryn Alyn Community (Holdings) Ltd [2003] EWCA Civ 383 (24 March 2003)

Interest under CPR 36.21(2) runs only to the date of the judge's judgment at first instance, not to the date of the Court of Appeal's judgment, unless a fresh Part 36 offer is made in the appeal. Interest on costs under CPR 36.21(3)(b) should be awarded at 4% over base rate from the date the work was done or liability for disbursements was incurred up to the date of the judge's order for costs, as it is not unjust to do so even in a publicly funded case.

Citation
[2003] EWCA Civ 383
Parties
Claimants/respondents: Rowlands & ors; First Defendant: Bryn Alyn Community (Holdings) Ltd (In Liquidation); Second Defendant/appellant: Royal and Sun Alliance PLC
Jurisdiction
England and Wales
Judgment Date
24 March 2003
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Costs and Interest Following Appeal From High Court
Outcome
Appeal and cross-appeal both partially allowed; each party succeeded on one main issue.
Legal Topics
Part 36 Offers, Interest on Damages, Interest on Costs, Indemnity Costs, Appeal Procedure
Civil Procedure Costs Part 36 Offers Interest on Damages Interest on Costs Indemnity Costs Appeal Procedure

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Parties

Rowlands & ors

Claimants/respondents

Bryn Alyn Community (Holdings) Ltd (In Liquidation)

First Defendant

Royal and Sun Alliance PLC

Second Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Costs and Interest Following Appeal From High Court

Legal Issues

  1. 1 What is the correct date for calculating interest under CPR 36.21(2)?
  2. 2 Is interest on costs payable under CPR 36.21(3)(b) in this case?
  3. 3 Did the compromise between parties preclude the claimants from challenging the refusal to award interest on costs?

Ratio Decidendi

Interest under CPR 36.21(2) runs only to the date of the judge's judgment at first instance, not to the date of the Court of Appeal's judgment, unless a fresh Part 36 offer is made in the appeal. Interest on costs under CPR 36.21(3)(b) should be awarded at 4% over base rate from the date the work was done or liability for disbursements was incurred up to the date of the judge's order for costs, as it is not unjust to do so even in a publicly funded case.

Court Disposition

Appeal and cross-appeal both partially allowed; each party succeeded on one main issue.

Orders

  • Interest under CPR 36.21(2) to run from the last day the defendant could have accepted the offer to the date of the judge's judgment, not to the date of the Court of Appeal's judgment.
  • Interest on costs under CPR 36.21(3)(b) awarded at 4% over base rate from the date work was done or liability for disbursements incurred up to the date of the judge's order for costs.