The Court of Appeal handed down judgment today in Harrison v University Hospitals of Derby & Burton NHS Foundation Trust [2022] EWCA Civ 1660 which clarifies Cartwright v Venduct Engineering Ltd [2018] EWCA Civ 1654 and establishes that compensation payable as a result of a settlement (whether Part 36 or otherwise) is not an ‘order for damages and interest’ within the meaning of CPR 44.14 and cannot be subject of a costs set off, even if recorded or referred to in a court order (for example because permission is required to accept it or some order is required to give effect to the settlement). The case also refers to the proposed amendments to CPR 44.14 to address Adelekun v Ho [2021] UKSC 43 and Cartwright and identifies scope for further debate as to their effect.
Roger Mallalieu KC acted for APIL, the intervener. A copy of the judgment may be found by clicking here.
