Pre-action offer

Walker Residential Ltd v Davis and another ChD Lawtel 9 December

Prior to the commencement of proceedings, the defendants offered the claimant £85,000 in settlement of the claimant’s prospective claim. The claimant rejected the offer and issued proceedings. On service of the claim form, the defendants paid £85,000 into court, which the claimant accepted. The defendants then applied for an order that the claimant pay their costs since the original offer on the basis that if the claimant had accepted the first offer, then the defendants would not have incurred the costs of defending the claim. CPR rule 36.10 provides that if a defendant to a money claim makes an offer prior to the commencement of proceedings, he must make a Part 36 payment within 14 days of service of the claim form. Although the payment was not made within the requisite time, the deputy master extended the time under CPR rule 3.1(2)(a) by which to make the Part 36 payment and accordingly determined that it automatically followed that the claimant should pay the defendants’ costs since the original offer.