Sanjay brought a claim against Julia claiming damages for br…
Sanjay brought a claim against Julia claiming damages for breach of contract in relation to the supply of various goods and services. Six months ago, Julia made a Part 36 offer in the sum of £20,000 in respect of the claim, which Sanjay did not accept. The trial took place today, and Sanjay obtained a judgment in the total sum of £16,000 inclusive of interest. Sanjay asks you for advice as to the costs position following judgment. What is the correct advice to give him? Sanjay is entitled to the costs of the proceedings as he has been successful in his claim and the general rule is that the unsuccessful party will pays the costs of the successful party. Sanjay is entitled to his costs of the proceedings up to the date that the Part 36 offer was made, but should pay Julia’s costs from that date, unless there is good reason not to do so. Sanjay is unlikely to be awarded costs as he will be seen to have conducted himself unreasonably in failing to accept the Part 36 offer which he did not beat at trial. Sanjay is entitled to his costs up until the expiry of the relevant period and Julia is entitled to her costs from the date on which the relevant period expired, unless the Court considers it unjust to make that order.