Gagliardi v Evolution Capital Management LLC [2025] EWHC 3488 (Comm) (19 December 2025)

Gagliardi v Evolution Capital Management LLC [2025] EWHC 3488 (Comm) (19 December 2025)

The 'start of trial' for CPR 36 purposes is the first day the parties are required to attend court, not judicial reading days. The claimant's Part 36 offer was made in time, so the consequences of CPR 36.17(4) apply. The defendant failed to show it would be unjust for those consequences to follow. Indemnity costs are only warranted in relation to the counterclaim, which was found to be abusive.

Citation
[2025] EWHC 3488 (Comm)
Parties
Claimant: Robert Gagliardi; Defendant: Evolution Capital Management LLC
Jurisdiction
England and Wales
Judgment Date
19 December 2025
Procedural Posture
Commercial Court Claim / Post Trial Costs and Consequential Orders
Outcome
Application granted in part; CPR 36.17(4) consequences apply; indemnity costs on counterclaim only; permission to appeal refused.
Legal Topics
Part 36 Offers, Costs Consequences, Interpretation of 'start of Trial', Indemnity Costs, Interest on Judgment
Civil Procedure Commercial Law Part 36 Offers Costs Consequences Interpretation of 'start of Trial' Indemnity Costs Interest on Judgment

Case Brief

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Parties

Robert Gagliardi

Claimant

Evolution Capital Management LLC

Defendant

Procedural Posture

Commercial Court Claim / Post Trial Costs and Consequential Orders

Legal Issues

  1. 1 Whether the claimant's Part 36 offer was made less than 21 days before trial for the purposes of CPR 36.17(7)(c)
  2. 2 Whether the consequences of CPR 36.17(4) should apply
  3. 3 Whether it would be unjust to apply the consequences of CPR 36.17(4)

Ratio Decidendi

The 'start of trial' for CPR 36 purposes is the first day the parties are required to attend court, not judicial reading days. The claimant's Part 36 offer was made in time, so the consequences of CPR 36.17(4) apply. The defendant failed to show it would be unjust for those consequences to follow. Indemnity costs are only warranted in relation to the counterclaim, which was found to be abusive.

Court Disposition

Application granted in part; CPR 36.17(4) consequences apply; indemnity costs on counterclaim only; permission to appeal refused.

Orders

  • Defendant to pay claimant's costs on the standard basis, except indemnity basis for costs relating to the counterclaim.
  • Defendant to pay enhanced interest at 10% above base rate on the judgment sum under CPR 36.17(4).