Transocean Drilling UK Ltd v Providence Resources Plc [2016] EWHC 2611 (Comm) (20 October 2016)

Transocean Drilling UK Ltd v Providence Resources Plc [2016] EWHC 2611 (Comm) (20 October 2016)

Costs are not to be considered when determining whether a claimant has beaten a Part 36 offer; however, in deciding whether it is unjust to apply the full Part 36 consequences, the court may consider the commercial reality, including costs, and the parties' conduct. In this case, although Transocean beat its Part 36 offer, its unreasonable and dishonest conduct justifies disapplying the enhanced consequences, limiting recovery to standard basis costs from the expiry of the offer.

Citation
[2016] EWHC 2611 (Comm)
Parties
Claimant: Transocean Drilling U.K. Limited; Defendant: Providence Resources PLC
Jurisdiction
England and Wales
Judgment Date
20 October 2016
Procedural Posture
Commercial Court Costs Application / Post Trial, Following Appeal and Costs Judgment
Outcome
Application granted in part; Part 36 engaged but enhanced consequences disapplied.
Legal Topics
Costs, Part 36 Offers, Indemnity Costs, Interest on Judgments, Settlement Offers
Civil Procedure Commercial Law Costs Part 36 Offers Indemnity Costs Interest on Judgments Settlement Offers

Case Brief

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Parties

Transocean Drilling U.K. Limited

Claimant

Providence Resources PLC

Defendant

Procedural Posture

Commercial Court Costs Application / Post Trial, Following Appeal and Costs Judgment

Legal Issues

  1. 1 Whether the claimant beat its Part 36 offer for the purposes of CPR 36.14(1)(b)
  2. 2 Whether Part 36 consequences should apply in full or be disapplied as unjust under CPR 36.14(4)

Ratio Decidendi

Costs are not to be considered when determining whether a claimant has beaten a Part 36 offer; however, in deciding whether it is unjust to apply the full Part 36 consequences, the court may consider the commercial reality, including costs, and the parties' conduct. In this case, although Transocean beat its Part 36 offer, its unreasonable and dishonest conduct justifies disapplying the enhanced consequences, limiting recovery to standard basis costs from the expiry of the offer.

Court Disposition

Application granted in part; Part 36 engaged but enhanced consequences disapplied.

Orders

  • Providence to pay Transocean's costs from 30 August 2014 on the standard basis.
  • No indemnity costs, no enhanced interest, and no £75,000 surcharge.