Stokes Pension Fund v Western Power Distribution (South West) Plc [2005] EWCA Civ 854 (11 July 2005)

Stokes Pension Fund v Western Power Distribution (South West) Plc [2005] EWCA Civ 854 (11 July 2005)

Where a defendant makes a clear, genuine pre-action offer to settle a money claim, open for at least 21 days and backed by an ability to pay, and the claimant fails to better that offer at trial, the offer should have the same costs consequences as a payment into court, even if not followed by a payment into court or if later withdrawn. The claimant should pay the defendant's costs from the expiry of the offer period.

Citation
[2005] EWCA Civ 854
Parties
Claimants/respondents: The Trustees of Stokes Pension Fund; Defendant/appellant: 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
Part 36 Offers, Calderbank Offers, Costs Consequences of Settlement Offers, Withdrawal of Offers, Exaggeration of Claims
Civil Procedure Costs Part 36 Offers Calderbank Offers Costs Consequences of Settlement Offers Withdrawal of Offers Exaggeration of Claims

Case Brief

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Parties

The Trustees of Stokes Pension Fund

Claimants/respondents

Western Power Distribution (South West) Plc

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Bristol County Court Decision on Costs

Legal Issues

  1. 1 Whether a defendant's pre-action offer not followed by a payment into court should have the same costs consequences as a Part 36 payment
  2. 2 Whether withdrawal of such an offer affects its costs consequences
  3. 3 Whether the claimant's exaggeration of the claim justifies a reduction in costs

Ratio Decidendi

Where a defendant makes a clear, genuine pre-action offer to settle a money claim, open for at least 21 days and backed by an ability to pay, and the claimant fails to better that offer at trial, the offer should have the same costs consequences as a payment into court, even if not followed by a payment into court or if later withdrawn. The claimant should pay the defendant's costs from the expiry of the offer 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