Extent of CPR Order 36 offers

HMRC v Blue Sphere Global [2010] EWCA Civ 1448

Blue Sphere Global had made a Part 36 offer in proceedings in which they sought to recover from HMRC sums paid by way of VAT. HMRC had refused repayment on the grounds that the transactions were connected with fraud. That refusal of repayment was upheld by a VAT Tribunal but reversed by a High Court Judge. The Revenue then appealed to the Court of Appeal. BSG made a Part 36 offer in relation to the appeal, and in the event the appeal was successful. BSG therefore sought orders under CPR 36.14 for indemnity costs, enhanced interest on costs and enhanced interest on damages.