This was an appeal and cross appeal from the first instance judge's order in respect of costs. The case itself related to physical and sexual abuse at the defendant's children's home, but the point in this appeal relates to costs and Part 36 offers. Royal & Sun Alliance was the first defendant's insurer. The first instance judge awarded damages, which were increased on appeal. Some claimants had made Part 36 offers and then obtained judgment for more than those offers. The first instance judge therefore ordered the second defendant to pay the claimant's costs on an indemnity basis but refused to award the claimant interest on those costs. However, he did order the second defendant to pay interest on the award of general damages at the penalty rate of 8% above the base rate from the last date on which the defendant could have accepted the claimant's Part 36 offer to the date of the first instant judgment.
Royal & Sun Alliance appealed in respect of the award of interest on the general damages. The claimant, on the other hand, challenged the refusal of the first instance judge to award interest on the indemnity costs. The claimants basically argued that the "date of judgment" referred to in CPR Part 36.21(2) meant the date of judgment in the Court of Appeal.