This article is published as part of Capsticks’ Insurance Review 2023.  

For proceedings issued on or after 6 April 2023, defendants will be able to enforce an order for costs in their favour “up to the aggregate amount in money terms of any orders for or agreement to pay or settle a claim for damages, costs and interest.” Previously enforcement could take place in only limited circumstances which effectively excluded settlements, including a claimant accepting a Part 36 offer.

Comment

The change will affect the way claimants’ solicitors approach settlement and what offers they accept or reject; for example, defendants’ Part 36 offers will need to be considered more carefully. There will also be an impact on interim payment applications.

In costs disputes, a successful defendant will now be able to recover its costs. The change is not retrospective. Read more about the changes in our insight.

Insurance Review 2023

This article is part of Capsticks' Insurance Review 2023.

Read the other articles featured in this publication below:

• Spotlight on three appeal court decisions
• Appeal decisions pending
• Fundamental Dishonesty – ‘good days and bad days’ defence rejected
• Two important changes to the fixed recoverable costs regime
• Defendants’ ability to recover their costs from claimants extended
• Pre inquest admissions fatal to defendant’s case
• Personal Injury Discount Rate (PIDR) review update

Get in touch

Aiming to be the firm of choice for medical malpractice and general liability insurers, we advise and support on all aspect of claims and inquests.

To discuss how any of these issues may affect your organisation, please get in touch with Majid Hassan, Ed Mellor or Sarah Bryant or Cheryl Blundell.