Claimant entitled to costs where Part 36 offer accepted pre-action

The Court of Appeal has confirmed that where a Part 36 offer is made and accepted pre-action, so that no proceedings are issued, the claimant is entitled to its costs under CPR 36.10: Solomon v Cromwell Group Plc [2011] EWCA Civ 1584. In so finding the court approved the decision of the Deputy High Court Judge (John Leighton Williams QC) in KT and others (minors) v Bruce [2011] EWHC B14 (QB) (see post).

Where a Part 36 offer is accepted within the period specified in the offer, CPR 36.10 provides that the claimant is entitled to "the costs of the proceedings" up to the date on which notice of acceptance is served. The Court of Appeal has now confirmed that "proceedings" for these purposes is not restricted to post-issue proceedings, but also includes steps taken before proceedings are issued. The claimant will therefore be entitled to recover "costs he has incurred in contemplation of the proceedings up to the date of acceptance insofar as they would have formed part of his recoverable costs if proceedings had already been issued".