Smithstone v Tranmoor Primary School [2026] EWCA Civ 13

On 16 January 2026, the Court of Appeal handed down judgment in the case of Smithstone v Tranmoor Primary School, a decision on costs recovery under CPR 36.17 when a party beats a liability-only Part 36 offer. The decision broadly spells the end of the road for arguments based upon the decision in Mundy v TUI UK Ltd [2023] EWHC 385 (Ch), in which Collins-Rice J noted that the application of CPR 36.17(1) was incompatible with liability-only Part 36 offers.

CPR 36.17(1)

CPR 36.17(1) provides that the costs consequences under CPR 36.17 apply where upon judgment being entered:

(a) a claimant fails to obtain a judgment more advantageous than a defendant's Part 36 offer; or

(b) judgment against the defendant is at least as advantageous to the claimant as the proposals contained in a claimant's Part 36 offer.