Difficulties with multiple defendants and Part 36 offers (Haynes v Department for Business Innovation and Skills)

Article summary

DR analysis: this appeal highlights the difficulties for defendants involved in multiparty proceedings where offers of settlement are available through Part 36 offers. The general proposition for parties is to consider ADR and, if appropriate, settle disputes. However, this can back fire, as it did here for the eighth defendant when it settled and suddenly found it self liable for 100% of the costs incurred by the claimant. This judgment sets out principles the courts should apply in such circumstances when dealing with the issue of costs which, given that all the relevant cases were first instance decisions, provides a helpful insight for practitioners as to the key issues to consider when determining whether to accept a claimant Part 36 offer where there are multiple defendants.