Where a Part 36 offer is accepted after the end of the ‘relevant period’ the liability for costs must be determined by the court unless the parties have agreed the costs[. The effect of this is that the parties must agree a consent order dealing with costs or the court will need to make an order. Conversely where a case settles within the relevant period a deemed costs order arises (CPR 44.9(1)(b)).
It is the cost order, whether made by
court, by consent or deemed, which gives rise to the right to detailed
assessment (CPR 47.7). Therefore, when a claim settles after the expiry of the
relevant period there is no automatic costs order on settlement and, unless the
parties agree a consent order, the receiving party will need to apply for a
cost order before commencing detailed assessment.