Udogaranya v Nwagw [2010] EWHC 90186 (Costs) (20 August 2010)

Udogaranya v Nwagw [2010] EWHC 90186 (Costs) (20 August 2010)

CPR Part 36 costs consequences do not apply where a Part 36 offer is accepted before proceedings are commenced unless the offer expressly provides for pre-issue costs. In this case, as proceedings had not been commenced and the offer did not expressly include pre-issue costs, the fixed recoverable costs regime applies unless there are exceptional circumstances. The court found that the conduct of the defendant and the complexity of the case constituted exceptional circumstances under CPR 45.12, justifying assessment of costs beyond the fixed regime.

Citation
[2010] EWHC 90186 (Costs)
Parties
Applicant/claimant: Patrick Udogaranya; Respondent/defendant: Kenneth Nwagw
Jurisdiction
England and Wales
Judgment Date
20 August 2010
Procedural Posture
Costs Assessment Following Settlement of Personal Injury Claim (part 8 Claim) / Application for Assessment of Costs and Determination of Applicable Costs Regime
Outcome
Application granted in part; costs to be assessed due to exceptional circumstances.
Legal Topics
Part 36 Offers, Fixed Recoverable Costs, Exceptional Circumstances Under CPR 45.12, Pre Action Settlement, Assessment of Costs

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Parties

Patrick Udogaranya

Applicant/claimant

Kenneth Nwagw

Respondent/defendant

Procedural Posture

Costs Assessment Following Settlement of Personal Injury Claim (part 8 Claim) / Application for Assessment of Costs and Determination of Applicable Costs Regime

  1. 1 Whether CPR Part 36 costs consequences apply to a pre-action settlement where no proceedings were commenced
  2. 2 Whether the case falls within 'exceptional circumstances' under CPR 45.12 to justify departure from fixed recoverable costs

Ratio Decidendi

CPR Part 36 costs consequences do not apply where a Part 36 offer is accepted before proceedings are commenced unless the offer expressly provides for pre-issue costs. In this case, as proceedings had not been commenced and the offer did not expressly include pre-issue costs, the fixed recoverable costs regime applies unless there are exceptional circumstances. The court found that the conduct of the defendant and the complexity of the case constituted exceptional circumstances under CPR 45.12, justifying assessment of costs beyond the fixed regime.

Court Disposition

Application granted in part; costs to be assessed due to exceptional circumstances.

Orders

  • Costs to be assessed (not limited to fixed recoverable costs) due to exceptional circumstances under CPR 45.12.