Hertel & v Saunders & Anor

Hertel & v Saunders & Anor

The defendants' offer letter did not comply with the mandatory requirements of CPR r. 36.2(2)(d), and therefore was not a valid Part 36 offer. The Deputy Master's costs order, based on Part 36, was erroneous. Costs must be determined under CPR r. 44.2, resulting in orders for costs in favour of the defendants, subject to the defendants' agreement to pay claimants' costs relating to the amended claim as specified in the offer letter.

Parties
Claimant: Tim-Alexander Gunther Nikolaus Hertel; Claimant: Artemis International SARL; Defendant: John Francis Saunders; Defendant: Liquid Strategies Limited
Jurisdiction
England and Wales
Judgment Date
09 October 2015
Procedural Posture
Civil / Appeal From Costs Order
Outcome
Appeal allowed; Deputy Master's costs orders set aside.
Legal Topics
Costs, Settlement Offers, CPR Part 36, Amendment of Pleadings
Civil Procedure Contract Law Costs Settlement Offers CPR Part 36 Amendment of Pleadings

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Parties

Tim-Alexander Gunther Nikolaus Hertel

Claimant

Artemis International SARL

Claimant

John Francis Saunders

Defendant

Liquid Strategies Limited

Defendant

Procedural Posture

Civil / Appeal From Costs Order

Legal Issues

  1. 1 Whether the defendants' offer letter constituted a valid Part 36 offer under the Civil Procedure Rules
  2. 2 Appropriate costs order following settlement and abandonment of claims
  3. 3 Effect of amendment and acceptance of offer on costs liability

Ratio Decidendi

The defendants' offer letter did not comply with the mandatory requirements of CPR r. 36.2(2)(d), and therefore was not a valid Part 36 offer. The Deputy Master's costs order, based on Part 36, was erroneous. Costs must be determined under CPR r. 44.2, resulting in orders for costs in favour of the defendants, subject to the defendants' agreement to pay claimants' costs relating to the amended claim as specified in the offer letter.

Court Disposition

Appeal allowed; Deputy Master's costs orders set aside.

Orders

  • Orders that defendants pay claimants' costs up to 10 March 2015 and for payment on account of costs are set aside.
  • Orders for costs in favour of defendants, subject to defendants' agreement to pay claimants' costs relating to the amended claim as specified in the offer letter.