QXB v University Hospitals Plymouth NHS Trust
[2023] EWHC 1760 (KB)
MGS v University Hospitals Bristol and Weston NHS Foundation Trust
16 June 2023
[2023] EWHC 1547 (KB)
High Court
A hospital made a mistake that hurt a baby. The hospital agreed to pay the family £9.3 million to help care for the child. There was a small argument about extra money (interest) because the payment was late. The judge said the family should get the extra money and approved the big payment because it's the best thing for the baby.
Key Facts
- •MGS, a child with a permanent brain injury resulting from medical negligence at birth, brought a personal injury claim.
- •Liability was admitted by the defendant, University Hospitals Bristol and Weston NHS Foundation Trust.
- •A Part 36 offer of £9.3 million (including periodical payments) was made by the claimant and accepted by the defendant out of time.
- •The court had to decide on the payment of interest on the late acceptance of the Part 36 offer and approve the settlement due to MGS being a protected party.
Legal Principles
Validity of Part 36 offer terms including interest accrual after the 21-day period.
CPR r.36.5 (amended 6 April 2021), Calonne Construction Limited v Dawnus Southern Limited [2019] EWCA Civ 754
Contractual interpretation: objective meaning to a reasonable person with all relevant background knowledge.
Ho v Adelekun [2019] EWCA Civ 1988, Wood v Capita and Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] Q WLR 896
Interest payable to compensate for being kept out of money; not punitive.
Jefford v Gee [1970] 2 QB 130, Sycamore Bidco Ltd v. Breslin [2013] EWHC 174 (Ch), Bristow v Judd [1993] PIQR Q117 CA
Court approval of settlements for protected parties under CPR 21.10; best interests of the child, overriding objective.
CPR 21.10, Dunhill v Burgin [2014] UKSC 18
Usual rules of Part 36 generally apply; no special allowance for protected parties.
Matthews v Metal Improvements [2007] EWCA Civ 215, IEH v Powell [2023] EWHC 1037 (KB)
Outcomes
Interest payable on the entire lump sum for the period of delay after the 21-day Part 36 period.
Contractual interpretation of the Part 36 offer; claimant was deprived of the use of the money during the delay.
Interest rate set at the SIA rate, not the judgment debt rate.
No authority supports the higher rate; it was not explicitly stated in the offer term.
Settlement of £9.3 million (including periodical payments) approved.
Settlement deemed in the best interests of the protected party (MGS).