Beware CPR Part 36.13(4), especially if your conduct has been less than perfect

The case of Pallett v MGN Ltd [2021] EWHC 76 (Ch) highlights an anomaly in relation to Claimant Part 36 offers, specifically at CPR 36.13(4).  That rule allows an offeree to accept a Part 36 offer out of time, thereby entitling it to ask the court to determine the liability for costs in an effort to avoid paying those costs.

Given that Mr Justice Mann stated that each case would turn on its own facts, claimants would do well to remember that such offers, if accepted out of time, could lead to the court disallowing their costs or even ordering costs against them.

Claimants should therefore be sure to engage in negotiations as to fail to do so may be to their own detriment.


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