No.14 of 2003
East West Corporation v P O Nedlloyd BV
19 February 2003
Court of Appeal, Brooke, Laws and Mance LJJ
The Court of Appeal in this case held that in order to found a claim for indemnity costs and a higher rate of interest under Part 36 where a successful Part 36 Order had been made in the court below, it was nevertheless necessary for the successful respondent to make a renewed Part 36 offer in respect of any appeal hearing.
The heart of the decision is to be found in paragraph 6 of Lord Justice Brooke’s judgment, which reads:
“6. In our judgment we should not strain the meaning of CPR 36.21(1) in this way. Part 36 provides a straight forward code whereby a claimant may protect himself against the subsequent costs of first instance proceedings, or the subsequent costs of an appeal, but there is no hint that the rule makers ever considered that a claimant might make a port manto Part 36 offer which would provide him with the protection of the Code in CPR 36.21 both at first instance and on a subsequent appeal. If he wants to protect himself as to the costs of an appeal, he must make a further offer in the appeal proceedings. Then everyone will know where they stand, and it is unnecessary to give CPR 36.21 a convoluted meaning.”