Enhanced interest on costs to be calculated using Aggregate Costs method after Part 36 expiry (Barry v Essex CC)
PI & Clinical Negligence analysis: Deputy District Judge Rathod, sitting at the Court County in Basildon, has held that where a claimant succeeds in a claim for damages at Trial and beats their own Part 36 offer, the interest on costs incurred post-expiry of the offer is calculated by applying x% per annum to the aggregate of all costs incurred by the claimant after expiry (‘the Aggregate Costs method’). Interest is not calculated on each individual item of costs incurred after expiry of the offer, based on when that individual item of costs was incurred (‘Individual Item method’). This case is relevant for all practitioners advising on Part 36 offers. It provides much needed clarity on the proper approach to interest on costs post-expiry. This may make a real difference to the decision to accept a Part 36 offer, particularly with respect to costs not incurred until closer to trial. This case is also notable for its holding that the court was not bound by the result of relevant Court of Appeal authority, which was limited to its facts. Written by Kyran Kanda, barrister at St Philips Chambers.