On 17 July the Government published a WMS that clarified a factual error contained in its previous statement on QOCS. The most recent statement sets out that sanctions under Part 36 are to be reformed on the following basis:

  • There is to be an additional amount to be paid by a defendant who does not accept a claimant’s offer to settle where the court gives judgment for the claimant that is at least as advantageous as an offer the claimant made to settle the claim. This additional sanction is to be calculated as 10 per cent of damages where damages are in issue, and 10 per cent of costs for non-damages claims.
  • In mixed (damages and non-damages) claims, the sanction will be calculated as 10 per cent of the damages element of the claim.
  • The sanction is to be subject to a tapering system for claims over £500,000 so that the maximum sanction is likely to be £75,000.
  • There would only be one sanction applicable for split trials.

Download the Written Ministerial Statement (PDF, 15KB)