Discretion under CPR Part 36

Lumb v Hampsey [2011] EWHC 2808 (QB); 11 October 2011

The claimant suffered a traumatic brain injury when he was knocked from his bicycle by a lorry on 29 May 2008. As a result of his injuries he was a protected party acting through a litigation friend until September 2011.The defendant admitted liability and judgment was entered for the claimant on 4 September 2009. On 26 July 2010, following settlement negotiations, the defendant made an offer to settle pursuant to CPR Part 36 in the sum of £900,000 (the Part 36 offer), which was further clarified on 2 August 2010, and was rejected by the claimant. At the date that the defendant’s Part 36 offer had been made, the claimant’s legal advisers had a substantial amount of expert evidence available to them. On 27 September 2010, the claimant made his own Part 36 offer in the sum of £1,100,000 which was rejected by the defendant. A trial on quantum was listed for 10 October 2011. On 27 September 2011, the claimant decided to accept the defendant’s Part 36 offer. The claimant made a number of applications: (i) to determine under CPR 36.10 whether the claimant should pay the defendant’s costs from the date of expiry of the relevant period; and (ii) for permission for the Part 36 offer to be accepted under CPR 36.9(3)(b) because further deductible benefits had been paid to the claimant since the date of the offer.