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ARTICLE · 30 AUGUST 2019

Costs: Nil Damages Offer Is A Valid Part 36 Offer

The High Court recently ruled that an offer to settle for nil damages can be considered a genuine Part 36 offer and subject to the usual costs consequences.

United KingdomLitigation, Mediation & Arbitration

The decision is significant as it recognises that a Part 36 offer can be genuine even without a damages element. Giving up the damages entitlement was found to be a significant concession, despite reasonable costs being sought as part of the offer.

In cases where the claimant is seeking an admission of liability / apology, defendants are able to ensure some costs protection by making an offer to admit liability, even if the offer does not include any damages.

Background

The Claimant was arrested on suspicion of harassment, but was released without charge. Nonetheless the Claimant, upon entering certain countries, would have been required to declare the arrest. This would have caused disruption to his business activities.

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