SQE1 sample questions

Question 67

A woman (‘the Claimant’) instructs a solicitor to issue a claim for damages against a firm of financial advisers (‘the Defendant’) on the basis that it provided her with negligent advice when she was its client. The claim is valued in excess of £100,000.

The Defendant instructs a solicitor and a defence is filed and served. On the same day that the defence is filed and served, the Defendant’s solicitor makes a Part 36 offer of £125,000 (‘the Offer’) on behalf of her client. The relevant period for acceptance of the Offer is 21 days.

One week after expiry of the relevant period the Defendant’s solicitor meets in conference with Counsel to discuss the case. Two weeks after the expiry of the relevant period the Defendant’s solicitor receives a letter from the Claimant stating that she no longer has solicitors acting on her behalf. Her letter also includes notice of acceptance of the Offer with confirmation that her notice of acceptance has also been filed with the court.

Which of the following statements describes the most likely costs consequences in the case?

A. The Claimant will pay the Defendant’s costs of the case on the standard basis.

B. The Claimant will pay the Defendant’s costs of the case on the indemnity basis.

C. The Defendant will pay the Claimant’s costs on the standard basis to the expiry of the relevant period, and thereafter the Claimant will pay the Defendant’s costs on the standard basis.

D. The Defendant will pay the Claimant’s costs of the case on the standard basis.

E. The Defendant will pay the Claimant’s costs on the indemnity basis to the expiry of the relevant period, and thereafter the Claimant will pay the Defendant’s costs on the indemnity basis.