Hochtief (UK) Construction Ltd & Anor v Atkins Ltd

Hochtief (UK) Construction Ltd & Anor v Atkins Ltd

The claimants beat their Part 36 offer and are entitled to enhanced interest at 6% above base rate, indemnity costs from 10 June 2017, an additional sum, and a payment on account. However, as Atkins succeeded on the Underpass claim, it would be unjust for Atkins to pay all the JV’s costs; a proportional order of 85%...

Source-derived case information.

Parties
Claimant: Hochtief (UK) Construction Limited; Claimant: VolkerFitzpatrick Limited; Defendant: Atkins Limited
Jurisdiction
England and Wales
Judgment Date
11 November 2019
Procedural Posture
Civil Construction Dispute / Consequentials Judgment After Trial
Outcome
Claimants’ application for enhanced costs and interest granted in part; proportional costs order made.
Legal Topics
Part 36 Offers, Costs, Interest, Indemnity Costs, Payment on Account
Civil Procedure Construction Law Part 36 Offers Costs Interest Indemnity Costs Payment on Account

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Parties

Hochtief (UK) Construction Limited

Claimant

VolkerFitzpatrick Limited

Claimant

Atkins Limited

Defendant

Procedural Posture

Civil Construction Dispute / Consequentials Judgment After Trial

Legal Issues

  1. 1 Whether the claimants are entitled to enhanced interest, indemnity costs, and an additional sum under CPR 36.17 after beating their Part 36 offer
  2. 2 Whether costs should be apportioned or awarded proportionally due to partial success
  3. 3 Whether a payment on account of costs should be ordered and in what amount

Ratio Decidendi

The claimants beat their Part 36 offer and are entitled to enhanced interest at 6% above base rate, indemnity costs from 10 June 2017, an additional sum, and a payment on account. However, as Atkins succeeded on the Underpass claim, it would be unjust for Atkins to pay all the JV’s costs; a proportional order of 85% of costs is fair.

Court Disposition

Claimants’ application for enhanced costs and interest granted in part; proportional costs order made.

Orders

  • Defendant to pay claimants interest on damages up to 9 June 2017 in the sum of £77,372.41 by 9 December 2019.
  • Defendant to pay claimants interest on damages at 6% above base rate from 10 June 2017 to 31 July 2019 in the sum of £112,812.20 by 9 December 2019.