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The settlement of substantive proceedings with offers that are inclusive of costs

Often paying parties want to do a ‘deal’ to settle a claim to include all liabilities, so to include any damages and costs payable.  Whilst this can be helpful to resolve disputes when settlement is agreed per the offer, the issue comes where settlement is not agreed as to what effect to give to such settlement proposals when consider the costs of the proceedings.

In Comberg v VivoPower International Services Ltd & Anor [2020] EWHC 2787 (QB) it was held that such a rolled up offer did not provide the Defendant with any costs protection – Mr Justice Freedman stating at [65] “The fact that the offer was rolled up with costs means that it does not provide costs protection.”  The Defendant had not made any offers via Part 36 or as a calderbank proposal that was exclusive of costs.   Neither party were adjudged to have made offers that provided them with any costs protection.

The judgment is here, which also looks at issues relating to who was the successful party and the appropriate costs award.  A useful case to know when faced with a rolled up offer, or when considering looking to rely upon such going forwards.  If you are concerned about such matters, then please do get in touch with us for further advice.

#costs #offers #calderbank #litigation #solicitors

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