Zenith Personal Injury Current Awareness

Payments after Part 36 Offers El Gamal v Synergy Lifestyle Ltd [2018] EWCA Civ 210

26 February 2018

Elliot Kay

The Respondent claimed over £150,000 for construction work

allegedly carried out to a house occupied by the Appellant. It was found that the invoice was fraudulent and was the product of a conspiracy between the Appellant and the Respondent to enable her to obtain money from a trust fund.

In 2015, the Appellant's solicitors made a Part 36 offer of £15,000. The Appellant had already made a payment of £6,600 in 2013 and subsequently a payment of £10,000 in February 2016, after the Part 36 offer.

In May 2016, the judge assessed the value of the works actually carried out at £36,389. The learned judge then deducted the sum already paid by the Appellant after the offer (and VAT) to arrive at a judgment sum which was greater than the Appellant’s Part 36 offer.

The Court of Appeal held that an unconditional payment on account of the sums claimed in the proceedings, made after the date of the Part 36 offer, had the effect of reducing the amount of the Part 36 offer by that sum unless the paying made it clear prior to judgment that it was not to be so treated. In the instant case, the judgment obtained by the Respondent was more advantageous than the Part 36 offer and the appeal was dismissed.

Current Awareness

By the Personal Injury team