Transocean Drilling UK Ltd v Providence Resources Plc

Transocean Drilling UK Ltd v Providence Resources Plc

Costs are not to be considered when determining whether a claimant has beaten a Part 36 offer under CPR 36.14(1)(b); however, it would be unjust to apply the full Part 36 consequences in this case due to the claimant's unreasonable and dishonest conduct and the commercial realities. The appropriate order is that the defendant pays the claimant's costs from 30 August 2014 on the standard basis, but without indemnity costs, enhanced interest, or surcharge.

Parties
Claimant: Transocean Drilling U.K. Limited; Defendant: Providence Resources PLC
Jurisdiction
England and Wales
Judgment Date
20 October 2016
Procedural Posture
Commercial Claim (costs Application) / Post Trial Costs Application After Appeal
Outcome
Application allowed in part
Legal Topics
Costs, Part 36 Offers, Indemnity Costs, Interest on Judgments
Civil Procedure Commercial Law Costs Part 36 Offers Indemnity Costs Interest on Judgments

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Parties

Transocean Drilling U.K. Limited

Claimant

Providence Resources PLC

Defendant

Procedural Posture

Commercial Claim (costs Application) / Post Trial Costs Application After Appeal

Legal Issues

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

Ratio Decidendi

Costs are not to be considered when determining whether a claimant has beaten a Part 36 offer under CPR 36.14(1)(b); however, it would be unjust to apply the full Part 36 consequences in this case due to the claimant's unreasonable and dishonest conduct and the commercial realities. The appropriate order is that the defendant pays the claimant's costs from 30 August 2014 on the standard basis, but without indemnity costs, enhanced interest, or surcharge.

Court Disposition

Application allowed in part

Orders

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