Flynn v Scougall [2004] EWCA Civ 873 (13 July 2004)

Flynn v Scougall [2004] EWCA Civ 873 (13 July 2004)

A claimant retains an unfettered right to accept a Part 36 payment within 21 days unless and until the court gives permission for withdrawal or reduction; the mere making of an application by the defendant does not automatically stay or suspend this right. The court's discretion to permit withdrawal or reduction should only be exercised if there is a sufficient change of circumstance to make it just, and the fact that the claimant has accepted the payment is a significant factor against granting permission.

Citation
[2004] EWCA Civ 873
Parties
Appellant/claimant: John Joseph Flynn; Respondent/defendant: Tracey Scougall
Jurisdiction
England and Wales
Judgment Date
13 July 2004
Procedural Posture
Personal Injury Claim (second Appeal) / Appeal From Newcastle Upon Tyne County Court, Judgment of HH Judge Bowers
Outcome
Appeal allowed
Legal Topics
Part 36 Payments, Withdrawal of Payment Into Court, Acceptance of Offers, Overriding Objective, Court's Discretion in Procedural Matters
Civil Procedure Personal Injury Part 36 Payments Withdrawal of Payment Into Court Acceptance of Offers Overriding Objective Court's Discretion in Procedural Matters

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Parties

John Joseph Flynn

Appellant/claimant

Tracey Scougall

Respondent/defendant

Procedural Posture

Personal Injury Claim (second Appeal) / Appeal From Newcastle Upon Tyne County Court, Judgment of HH Judge Bowers

Legal Issues

  1. 1 Whether a claimant can accept a Part 36 payment within 21 days after notice of payment in, when the defendant has applied to withdraw or reduce the payment and notified the claimant.
  2. 2 Whether the defendant's application for permission to withdraw or reduce a Part 36 payment automatically stays or suspends the claimant's right to accept the payment within 21 days.

Ratio Decidendi

A claimant retains an unfettered right to accept a Part 36 payment within 21 days unless and until the court gives permission for withdrawal or reduction; the mere making of an application by the defendant does not automatically stay or suspend this right. The court's discretion to permit withdrawal or reduction should only be exercised if there is a sufficient change of circumstance to make it just, and the fact that the claimant has accepted the payment is a significant factor against granting permission.

Court Disposition

Appeal allowed

Orders

  • Payment out of court to claimant's solicitors of £10,000; interest accrued up to 25 March 2003 to defendant's solicitors, interest thereafter to claimant's solicitors.
  • Defendant to pay claimant the balance of £16,686.28 plus interest of £1,610.82 within 21 days.