TAYLOR ROSE TTKW WINS COSTS APPEAL ON PART 36, COUNTER CLAIMS AND MEDWAY OIL
His Honour Judge Gregory handed down judgment today (9 June 2016) in Farnworth v Davies. Matthew Hoe of Taylor Rose TTKW acted for the successful appellant.
The issue was whether the rule in Medway Oil applied to the costs of a counterclaim which concluded by Part 36 acceptance. The receiving party said the terms of Part 36 entitled to him to all costs of the claim, including costs of unsuccessfully defending the originating claim. The paying party said the Part 36 acceptance only entitled the receiving party to the costs of the claim.
The judge examined the decision of the lower court and said:
"The learned District Judge seemed to feel that he was in some way constrained by the language of Part 36 and was compelled to make a more generous costs order in favour of the defendant on the compromise of the Part 20 claim than he would otherwise have chosen. My reading of his judgement suggested that he had not been invited to consider the wording of CPR 36.13 (7) or its predecessor CPR 36.10 (6), or read those provisions in conjunction with CPR 20.2 (2). Neither, it seems, was he directed to the authority of
Instead he decided that he had effectively no option but to award the defendant the totality of the costs of her involvement in all the proceedings arising out of the index accident – even those costs incurred in her unsuccessful defence of the claimant’s claim. In my judgement the learned District Judge was wrong in so finding, and in his construction and interpretation of the word ‘proceedings’ in the context of Part 36."
The appeal was allowed. A copy of the judgment can be provided on request.
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