Shying at the fence – Hugh Grant’s legal dilemma

A recent high-profile case involving Hugh Grant has resulted in a Part 36 settlement deal.  A Part 36 offer is designed to encourage parties to be reasonable and settle disagreements ahead of trial.

The Love Actually star had issued an unlawful information gathering claim against the publisher of The Sun newspaper, News Group Newspapers. Grant alleged offences such as landline tapping, hacking voicemails and bugging his home and vehicle.

The case was due to go to trial in January 2025.  However, despite Hugh Grant having been quoted as stating he was “pleased that [the] case will go to trial”, a Part 36 offer has significantly altered his perspective. He explains in the below quote:

“If I proceed to trial and the court awards me damages that are even a penny less than the settlement offer, I would have to pay the legal costs,’ he said. ‘My lawyers tell me that that is exactly what would most likely happen here. Rupert Murdoch’s lawyers are very expensive. So even if every allegation is proven in court, I would still be liable for something approaching £10m in costs. I’m afraid I am shying at that fence.”

What is a Part 36?

Part 36 is part of the Civil Procedure Rules 1998 which governs a type of settlement offer in civil litigation. It is seen as a serious offer to settle as it implicates a financial risk to legal costs at trial.   

A Part 36 offer can be made by the Claimant or the Defendant. It is a procedural offer which remains open unless a party specifically withdraws the offer, or an expiration date is stated.

Importantly, Part 36 Offers are made on a ‘Without Prejudice save as to costs’ basis. This means that a Part 36 offer should not be disclosed in Court until a judgement has been reached. However, once a decision has been made, the court will be made aware of a Part 36 Offer before an order is made about the costs of the proceedings.

What are the key considerations for a client in relation to Part 36?

• Faster settlement – Part 36 is designed to encourage settlement before trial. It is often used as a tactical tool to force the opponent to think seriously about the risks of continuing to litigate.

• Certainty on costs – Where a party fails to ‘beat’ the other side’s Part 36 offer at trial the court will apply a set approach to dealing with costs.

• Risk on costs – Where a party rejects a realistic Part 36 offer, it risks being penalised on costs and interest if it subsequently achieves a judgement that is less advantageous than the offer.

• Lower offer – A client might be encouraged to offer a lower amount to reduce the risks on costs in the event it does go to trial.

• Access to justice – A client may feel that if they accept a Part 36 offer and the case doesn’t go to trial, they have not received justice. This may be particularly true if the claim isn’t financially motivated.

• Financial means to litigate – Sometimes a key consideration is who has deeper pockets to fight.. This also ties in to how much risk people are willing to take and who has more to lose.

Conclusion in Hugh Grant case

Despite Hugh Grant’s claim not being financially motivated, it is understandable that he accepted the Part 36 settlement offer. The risk of a potentially astronomical adverse costs award being made against him following protracted proceedings was clearly too much. This case demonstrates the harsh realities of litigation and the risk of going up against opponents who have deeper pockets.

It has been reported that the settlement money in the Hugh Grant case will be put towards press reform.

Bailoran litigation specialist Cat Tanham said: “Hugh Grant feeling that his hand was forced in accepting a Part 36 offer shows how much pressure these offers can put opponents under when timed correctly. Sadly, it also highlights the difficulties in succeeding in David v Goliath cases, no matter how strong the evidence.”

How can we help?

We specialise in dispute resolution and commercial litigation. So, if you have a dispute over money or property, we can help. At Bailoran, ‘our business is protecting yours‘, so please get in touch.

This article does not constitute legal advice. If you would like more information on anything discussed in this article, please contact us at:

e: info@bailoran.com w: https://bailoransolicitors.com/ t: 0113 266 0735.