Benefits of Part 36 do not apply to detailed assessment costs

In Natalie Best v Luton & Dunstable Hospital NHS Foundation [2021] EWHC B2 (Costs) (29 January 2021) the court considered whether a Claimant can rely upon the additional rewards for beating a Part 36 offer in detailed assessment proceedings.

Costs Judge Leonard concluded that the costs of detailed assessment proceedings do not, for the purposes of CPR 36.17(4), fall within “any issue that arises in the claim”, therefore the Claimant could not claim any uplift.

Despite the Claimant beating her Part 36 offer (£52,000.00) for costs of assessment by a substantial amount (£6,119.80), the Judge concluded that Part 36 had no application because CPR 47.20(7) “does not provide that the determination of the costs of detailed assessment proceedings is itself to be regarded as an independent claim”.

If the Claimant was correct then acceptance of a Part 36 offer for costs of the detailed assessment would result in a deemed order for costs under CPR 44.9(1)(b) which could result in a further Bill of costs dealing with the costs of the detailed assessment. This could create “an indefinite cycle of Part 36 offers and new detailed assessment proceedings”.

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