Part 36 Offers - Success Fees

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The Court of Appeal have given some useful guidance in relation to assessing the risk of not beating a Part 36 offer and therefore the appropriate success fee in a case where liability had been admitted. 

In C -v- W [2008] EWCA Civ 1459 the Court considered that a success fee of 20% was appropriate in this RTA where the Defendant had already admitted liability.  The case contains some helpful discussion about the appropriate risk and the Court acknowledged the difficulties faced by Solicitors in assessing the theoretical risk of not beating a Part 36 offer which hadn't yet been made. 

It was suggested that it would perhaps be worth considering the type of two stage success fee that the Court of Appeal had repeatedly endorsed containing a clause giving the Solicitors the right to review the success fee once a Part 36 offer was made. 

If you would like to have a word about this, or indeed about any other costs issues please do not hesitate to contact me.

Andrew

A Neat Legal Services
Law Costs Draftsmen and Legal Costs Consultants.