Part 36 exists to avoid enquiry into whether parties negotiated reasonably or not
In the case of Manna -v- Central Manchester Hospitals NHS Trust  EWCA Civ 12 (view here) the Court of Appeal upheld the trial judge’s award of indemnity costs and refused to entertain a discussion as to whether the parties to the litigation had negotiated in a reasonable manner or not. Mrs Justice Cox said the Part 36 regime exists to prevent that very thing.
In contrast with the cases of Taylor -v- Honiton Town Counsel  EWHC 101 (Admin) and Lloyds Bank -v- McBains Cooper  EWHC 30 (TCC) where the courts had examined attempts at negotiation between the parties. Something to be discouraged after the Manna decision.
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