Carillion JM Ltd v Phi Group Ltd

Carillion JM Ltd v Phi Group Ltd

Phi’s February 2010 offer was not a valid Part 36 offer as it failed to specify a 21-day acceptance period as required by the CPR. It was, however, a contractual offer, which was effectively withdrawn by the inconsistent November 2010 offers. The court exercised its discretion to order Phi to pay 20% of Carillion’s costs and 30% of RWC’s costs of the contribution proceedings, with no order as to costs for Phi’s contribution proceedings, reflecting the parties’ conduct, offers made, and the outcome of the litigation.

Parties
Claimant: Carillion JM Limited; Defendant: Phi Group Limited; Third Party/defendant: Robert West Consulting Limited
Jurisdiction
England and Wales
Judgment Date
23 June 2011
Procedural Posture
Civil (construction/contribution Proceedings) / Post Trial (costs Judgment)
Outcome
Costs apportioned; permission to appeal refused.
Legal Topics
Costs, Part 36 Offers, Contribution Proceedings, Settlement Offers

Case Brief

Summary, issues, holding and outcome

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Parties

Carillion JM Limited

Claimant

Phi Group Limited

Defendant

Robert West Consulting Limited

Third Party/defendant

Procedural Posture

Civil (construction/contribution Proceedings) / Post Trial (costs Judgment)

  1. 1 Whether Phi Group's February 2010 offer was a valid Part 36 offer under the Civil Procedure Rules and its effect on costs.
  2. 2 How costs should be apportioned between Phi Group and RWC in relation to Carillion's costs and the contribution proceedings.

Ratio Decidendi

Phi’s February 2010 offer was not a valid Part 36 offer as it failed to specify a 21-day acceptance period as required by the CPR. It was, however, a contractual offer, which was effectively withdrawn by the inconsistent November 2010 offers. The court exercised its discretion to order Phi to pay 20% of Carillion’s costs and 30% of RWC’s costs of the contribution proceedings, with no order as to costs for Phi’s contribution proceedings, reflecting the parties’ conduct, offers made, and the outcome of the litigation.

Court Disposition

Costs apportioned; permission to appeal refused.

Orders

  • Phi Group Limited to pay 20% of Carillion’s costs (which RWC has been ordered to pay).
  • Phi Group Limited to pay 30% of RWC’s costs of its contribution proceedings against Phi.