Refusal to accept Part 36 offers not unreasonable conduct

Refusal to accept Part 36 offers not unreasonable conduct

A defendant’s refusal to accept Part 36 offers was not unreasonable conduct and should not be penalised in costs when it succeeded at trial. The Court of Appeal held that it is reasonable for a defendant, particularly a public body, to take the view that it will contest a claim that it reasonably considers to be unfounded in order to deter other unfounded claims.