Timokhin V Timokhina [2026] EWHC 1194 (KB): Part 36 High Offers Can Still Be Genuine Attempts to Settle

In Timokhin v Timokhina [2026] EWHC 1194 (KB), the claimant sought to enforce Russian judgments with a value of approximately £417,000. Three months before trial, he made a Part 36 offer to accept £380,000 – around 91% of the value of his claim.

The defendant argued that the offer was not a genuine attempt to settle and that it would therefore be unjust to impose the usual Part 36 consequences. In particular, it was submitted that the discount offered was too small and that the claim was effectively binary in nature.

Mr Justice Dias rejected those arguments.

The Court accepted that judges must be vigilant against very high settlement offers being used merely as a device to secure indemnity costs. However, the appropriate focus was not simply the percentage discount offered, but the strength of the underlying claim.

The Court held that the claimant reasonably regarded his prospects of success as very strong and was therefore justified in offering a discount of just under 10%. In those circumstances, the offer was not “tokenistic and illusory, but sober and realistic”.

Having succeeded at trial and beaten his Part 36 offer, the claimant obtained the full Part 36 consequences, including indemnity costs from the expiry of the relevant period and enhanced interest.

The decision is a useful reminder that there is no minimum percentage discount required for a Part 36 offer to constitute a genuine attempt to settle. Whether an offer represents a genuine attempt to settle will depend on the circumstances of the case, including the perceived strength of the offeror’s position. A high offer will not automatically be treated as tactical or abusive simply because it leaves only a modest discount from the full value of the claim.

Part 36 offers remain one of the most powerful costs tools available to litigants. If you would like advice on the costs consequences of making, accepting or rejecting a Part 36 offer, please get in touch with the team at Blackstone Legal Costing UK.

Article dated: 26/08/2026

Rebecca Humble 

Costs Lawyer/Founder