Shield With Part 36!

In Global Energy Horizons Corporation v Gray [2021] EWCA Civ 123, C was successful at trial, being awarded £3 million, but had claimed £227.8 million. At first instance, reflecting the fact that there had been a measure of success by D at trial. The Court of Appeal overturned that decision. The fact that C had succeeded on a fraction of its claim was not a ground to refuse an order for costs.

The advice the court gave was:

"Where a defendant is faced with an exorbitant claim which he wishes to defend vigorously but where he is vulnerable to a finding that he is liable for a much smaller amount, there is a clear process provided by CPR Part 36 which he can follow to protect his position.”

As such, it reiterates the point that the primary method for defendants to protect their position in the CPR is by making sensible Part 36 offers. This is particularly pressing where liability has been admitted or established, and a defendant cannot rely solely on its view that the claim has been significantly overvalued.


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