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Litigation Letter

Indemnity basis

MIOM 1 Ltd & Anor v Sea Echo ENE (No 2) [2011] EWHC 2715 (Admlty), 26 October 2011

CPR Pt 61 does not provide for costs on the indemnity basis where a CPR Pt 61 offer is successful, whereas CPR Pt 36 does provide for such costs when a CPR Pt 36 offer was successful. That was a clear indication that the authors of CPR Pt 61 did not intend that indemnity costs should be awarded merely because a CPR Pt 61 offer had been successful. In those circumstances, it was not appropriate in a collision action in the Admiralty Division governed by CPR Pt 61 to order costs on the indemnity basis merely because an offer had been successful.

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