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Farag v Commissioner of Police of the Metropolis, Court of Appeal, 15 December 2005

6 January 2006
The issues

Costs – Part 36 Offers – Offers to Settle – Trustees of Stokes Pension Fund v Western Power Distribution

The facts

The Claimant started an action for wrongful arrests and false imprisonment. The Defendant had made an offer to settle in 1997. The offer was withdrawn 2 years before the Trial. The Claimant succeeded to a limited extent at Trial and the Defendant was ordered to pay his costs. The Defendant appealed on the basis that an offer had been made which the Judge should have taken into account when making his costs order.

The decision

The offer had been made prior to the introduction of the CPR. The Court was however entitled to have regard to the offer at the time of Trial and after the coming into force of the CPR.

Following Trustees v Stokes Pension Fund an offer by letter in appropriate circumstances could be treated as a Part 36 Offer.

The fact that it was withdrawn did not deprive the offer of effect.

The Judge had failed to exercise its discretion appropriately in refusing to consider the offer. Costs order would be substituted with no order for costs.

Appeal allowed.

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