Is a payment on account permitted by CPR 36?

A recent case, Finnegan v Frank Spiers (t/a Frank Spiers Licensed Conveyancers) [2018] ECWH 3064 (Ch) has clarified whether a party can obtain a payment on account of costs after a Part 36 offer has been accepted.

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Is a payment on account permitted by CPR 36?

The Claimant had initiated a claim for damages and subsequently accepted a Part 36 offer from the Defendant. The Claimant then issued an application for an interim payment on account of costs as well as detailed assessment proceedings.

On appeal to the High Court, it was decided that as Part 36 is, in effect, a self-contained code there is no reason to apply CPR 44.2(a) which allows payment on account where costs are to be subject to detailed assessment, unless there is a good reason not to do so. As a deemed costs order is made upon the acceptance of a Part 36 offer – and Part 36 spells out the consequences of accepting such an offer – there is no reason to apply alternative rules.

This is an interesting precedent given the lack of previous guidance in respect of this matter.

If you would like to discuss how best to tackle any dispute you or your business may be facing, please email Andrew.broadbent@keebles.com or call Andrew on 0114 252 1416.  

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