Jockey Club Racecourse Ltd v Willmott Dixon Construction Ltd [2016] EWHC 167 (TCC) (04 February 2016)

Jockey Club Racecourse Ltd v Willmott Dixon Construction Ltd [2016] EWHC 167 (TCC) (04 February 2016)

The claimant's Part 36 offer was valid and a genuine attempt to settle. Although the discount was modest, it was not derisory. It would be unjust to award indemnity costs from 21 days after the offer due to the timing and information available, but indemnity costs are appropriate from four months after the offer, when the defendant could reasonably have assessed its position.

Citation
[2016] EWHC 167 (TCC)
Parties
Claimant: Jockey Club Racecourse Limited; Defendant: Willmott Dixon Construction Limited
Jurisdiction
England and Wales
Judgment Date
04 February 2016
Procedural Posture
Civil (construction Dispute) / Case Management Hearing on Costs Following Settlement of Liability Issues
Outcome
Claimant awarded costs on the standard basis up to 29 May 2015 and on the indemnity basis thereafter in relation to liability issues.
Legal Topics
Part 36 Offers, Indemnity Costs, Liability in Construction Contracts, Case Management
Civil Procedure Construction Law Part 36 Offers Indemnity Costs Liability in Construction Contracts Case Management

Case Brief

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Parties

Jockey Club Racecourse Limited

Claimant

Willmott Dixon Construction Limited

Defendant

Procedural Posture

Civil (construction Dispute) / Case Management Hearing on Costs Following Settlement of Liability Issues

Legal Issues

  1. 1 Whether the claimant's Part 36 offer was a valid offer within the meaning of Part 36
  2. 2 Whether the offer was a genuine attempt to settle liability
  3. 3 Whether it would be unjust to award indemnity costs to the claimant from the date of the offer

Ratio Decidendi

The claimant's Part 36 offer was valid and a genuine attempt to settle. Although the discount was modest, it was not derisory. It would be unjust to award indemnity costs from 21 days after the offer due to the timing and information available, but indemnity costs are appropriate from four months after the offer, when the defendant could reasonably have assessed its position.

Court Disposition

Claimant awarded costs on the standard basis up to 29 May 2015 and on the indemnity basis thereafter in relation to liability issues.

Orders

  • Claimant to have its costs in relation to liability on the standard basis up to 29 May 2015 and thereafter on an indemnity basis.
  • Issues relating to interest and other consequences of CPR 36.17 reserved for future determination.