Part 36 offers in costs proceedings
From 1st April 2013, Part 36 offers apply to detailed assessment proceedings.
A receiving party who makes a Part 36 offer that is not beaten at assessment (provisional or detailed) is entitled to a 10% uplift on the costs awarded.
Many claimant solicitors will be rubbing their hands in anticipation.
Whoa there cowboy.
Costs belong to the client. An award of the additional 10% is therefore an award to the client, not the solicitor. The solicitor has no right to retain the 10% uplift unless the retainer expressly allows for this. The current Law Society Model CFA certainly does not do this. Any solicitors caught sneakily pocketing the 10% uplift would be guilty of theft. I wonder if the new Law Society Model CFA, if and when it’s published, will deal with this.