Costs: Behaviour Of Parties

The High Court has recently confirmed and clarified the case law on how the behaviour of parties and the making of without prejudice offers should affect costs.

In a claim arising from material damage to premises, the defendants quickly admitted liability but there was considerable dispute concerning quantum. The claimants maintained an unrealistic expectation of quantum until trial and had been obstructive in providing disclosure to support their position.

The claimants claimed in the region of £600,000. Approximately a year before trial, the defendants made a Part 36 offer of £139,000. On 16 May 2012, the defendants made an increased without prejudice offer of £267,046 plus £85,000 in respect of costs which was open for acceptance until 30 May 2012. At trial, in mid June 2012, damages of £173,871.13 were awarded.