The 57th update to the Civil Procedure Rules comes in to force on 1 October 2011, and the most significant provision relates to Part 36 offers to settle. In particular the amendment seeks to clarify the rule under Part 36.14(1) which considers the position when a judgment equals or betters an offer to settle.
The update has been added to revoke the decision of the Court of Appeal in the case of Carver v BAA plc [2008] EWCA Civ 412, [2008] All ER 911, in which a claimant beat a defendant's Part 36 offer by only £51, but the Judge held that the judgment was not "more advantageous" for the Claimant and as a consequence, the Claimant was ordered to pay the defendant's costs from the date of the offer.
The updated Rule 36.14 (1A) provides that; ‘For the purposes of paragraph (1) in relation to any money claim or money element of a claim, “more advantageous” means better in money terms by any amount, however small, and “at least as advantageous” shall be construed accordingly.’
The provision removes any doubt as to the meaning of 36.14 (1) (a). Put simply, if a Claimant beats a Defendant's offer by any amount, then the usual cost orders should follow.
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