Flynn v Scougall

Flynn v Scougall

A claimant retains the right to accept a Part 36 payment within 21 days unless and until the court gives permission for withdrawal or reduction, even if the defendant has applied to withdraw or reduce the payment and notified the claimant. The defendant must show a sufficient change of circumstance to justify withdrawal or reduction. The defendant’s application does not automatically stay or suspend the claimant’s right to accept.

Parties
Appellant/claimant: John Joseph Flynn; Respondent/defendant: Tracey Scougall
Jurisdiction
England and Wales
Judgment Date
13 July 2004
Procedural Posture
Civil Appeal / Second Appeal, Judgment
Outcome
appeal allowed
Legal Topics
Part 36 Payments, Withdrawal of Payment Into Court, Offers to Settle, Court's Discretion, Overriding Objective

Case Brief

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Parties

John Joseph Flynn

Appellant/claimant

Tracey Scougall

Respondent/defendant

Procedural Posture

Civil Appeal / Second Appeal, Judgment

  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 to reduce or withdraw a Part 36 payment automatically stays or suspends the claimant's right to accept the payment

Ratio Decidendi

A claimant retains the right to accept a Part 36 payment within 21 days unless and until the court gives permission for withdrawal or reduction, even if the defendant has applied to withdraw or reduce the payment and notified the claimant. The defendant must show a sufficient change of circumstance to justify withdrawal or reduction. The defendant’s application does not automatically stay or suspend the claimant’s right to accept.

Court Disposition

appeal allowed

Orders

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