Lodgments and Tender Offers in Irish Personal Injury Law: Procedure, Costs Consequences and Recent Reforms
Author: Gary Matthews, Principal Solicitor · Law Society of Ireland PC No. S8178 · 3rd Floor, Ormond Building, 31–36 Ormond Quay Upper, Dublin D07 · 01 903 6408 · ·
Quick Reference: The Lodgment and Tender Regime at a Glance
- Topic
- Lodgments and tender offers in Irish civil litigation
- Governing rules
- Order 22 RSC (High Court); Order 15 Circuit Court Rules; Order 45 District Court Rules
- Key statutes
- Section 17 Civil Liability and Courts Act 2004; Section 51A PIAB Act 2003; Section 169 Legal Services Regulation Act 2015; Section 63 Civil Liability Act 1961
- Most recent reform
- SI 186/2022 (medical-report 21-day window, effective 26 April 2022); Section 51A(3A) PIAB Act, substituted 13 February 2023 by the Personal Injuries Resolution Board Act 2022
- Leading cases
- Ely v Dargan [1967] IR 89; O'Malley v Hermann [2022] IEHC 9; Higgins v Irish Aviation Authority [2020] IECA 277; ESB v Good [2025] IESC 40
- Primary source
- Order 22 RSC on courts.ie
- Revised legislation
- Law Reform Commission consolidated statutes
Contents
What Lodgments and Tender Offers Are
A formal mechanism for shifting costs risk. Lodgments and tender offers are formal settlement procedures in Irish civil proceedings. A defendant offers the plaintiff a specified sum in full satisfaction of the claim. If the plaintiff rejects the offer and fails to beat it at trial, strict consequences for costs follow.
A lodgment is the actual deposit of money into court by a defendant, made under Order 22 of the Rules of the Superior Courts. A tender offer is a formal written offer made by a “qualified party” (principally insurers, the Motor Insurers’ Bureau of Ireland, the State, and State-indemnified parties) under Order 22 Rule 14, with no requirement to physically deposit funds. Once made, a tender is “deemed to be a lodgment” and produces the same procedural and costs consequences.
| Feature | Lodgment | Tender Offer |
|---|---|---|
| Who may make it | Any defendant in a civil action | Only a “qualified party” (State, State-indemnified, authorised insurer, MIBI) |
| Funds deposited in court? | Yes — actual money paid into the court’s account | No — written Notice of Tender only |
| Governing rule | Order 22 Rule 1 RSC (High Court); Order 15 Circuit Court Rules | Order 22 Rule 14 RSC |
| Form used | Lodgment notice under Rule 1 | Form No. 4A (liability denied) or Form No. 5A (liability admitted), Appendix C |
| Costs consequence if not beaten | Identical — default rule under Order 22 Rule 6 applies | Identical — deemed to be a lodgment for all costs purposes |
| Non-disclosure to trial judge | Yes (Rule 7) | Yes (Rule 7, reinforced by SI 396/2013) |
| Typical use | Defendants without insurance cover; private defendants in small claims | The dominant mechanism in High Court PI practice given insurance involvement |
The two mechanisms exist to encourage settlement and reduce the consumption of judicial resources. In Ely v Dargan [1967] IR 89, Ó Dálaigh CJ identified a strong public policy interest in permitting a defendant to make a lodgment, in his memorable phrase, “at the eleventh hour”. That principle still underpins the regime sixty years later.
Pre-Litigation vs Post-Litigation: A Common Confusion
Order 22 lodgments and tender offers operate only once court proceedings have commenced. Before proceedings are issued, the equivalent settlement mechanism is the Injuries Resolution Board assessment process under the PIAB Act 2003, or informal without-prejudice negotiation. The Section 17 statutory formal offer, under the Civil Liability and Courts Act 2004, also operates only after proceedings have been issued. The deemed-tender mechanism under Section 51A(3A) is the bridge: an Injuries Resolution Board assessment, made pre-litigation but rejected by the claimant, is converted into a court-stage tender at the moment proceedings are issued.
The Seven Primary Sources Governing the Regime
Seven instruments interlock to shape every lodgment decision. The Irish lodgment and tender regime is not contained in a single Act or rule. It sits at the intersection of two sets of court rules and five statutes. A practitioner advising on whether to accept or reject an offer must, in practice, hold all seven in mind simultaneously.
The table below maps each source to the procedural moment it governs and the consequence it triggers. Each provision is cross-linked to its primary source.
| Source | What it governs | Costs consequence triggered |
|---|---|---|
| Order 22 RSC | High Court procedure: timing windows, payment into court, tender by qualified parties, non-disclosure to trial judge | Default rule under Rule 6: plaintiff pays defendant’s costs from date of lodgment if not beaten at trial |
| Order 15 Circuit Court Rules | Circuit Court procedure: parallel mechanism with shorter timelines and 28-day acceptance window | Same default rule, calibrated to Circuit Court costs scales |
| Section 17 Civil Liability and Courts Act 2004 | Statutory formal offers: each party must serve a formal offer (or notice of no offer) at a prescribed pre-trial date | Section 17(5) directs the court to have regard to the terms and circumstances of any formal offer when awarding costs |
| Section 51A PIAB Act 2003 | Where an Injuries Resolution Board assessment has been accepted by the respondent but rejected by the claimant, that accepted assessment is deemed to be a tender of payment under rules of court | Section 51A(3A) (in force from 13 February 2023): claimant who fails to beat the assessment at trial is exposed to the standard costs penalty |
| Section 169 Legal Services Regulation Act 2015 | The general statutory framework for costs: the “entirely successful” party is entitled to costs unless the court orders otherwise, having regard to seven listed factors | Section 169(1)(f) expressly directs the court to consider any settlement offer when exercising costs discretion |
| Section 63 Civil Liability Act 1961 | Settlements involving minors: court approval is mandatory before any compromise (including acceptance of a lodgment) takes effect | Overrides the default Order 22 acceptance machinery in minor cases |
| Order 99 Rules 57–61 RSC | Lodgment and tender in satisfaction of legal costs at the adjudication stage, distinct from the action-stage Order 22 regime | Parallel cost-shifting mechanism operating after substantive judgment, governed by the Legal Costs Adjudicator |
Order 22 of the Rules of the Superior Courts: Timing, Procedure, and Tender Offers
Order 22 is the procedural spine of the regime. In any High Court action for debt or damages, a defendant may, under Order 22 Rule 1 RSC, pay a sum of money into court in satisfaction of the plaintiff’s claim. The defendant may do so with or without an admission of liability.
The Standard Timing Windows
For personal injury actions, the defendant may lodge once without leave of the court within two standard windows: at the time of delivery of the Defence, or within four months from the date of service of the Notice of Trial. Outside these windows, leave of the court is required, and the court has discretion to grant leave on conditions. Rule 1(7) provides:
In actions other than those mentioned in paragraph (4) of this Rule, payment into Court shall be made within the time limited for delivering the defence, or at any later time by leave of the Court upon such terms and conditions as to the Court seem fit.
Order 22 Rule 1(7), Rules of the Superior Courts
Rule 1(9), originally inserted by SI 265/1993, granted an additional 21-day window where the plaintiff served replies to particulars or additional particulars after the standard windows had closed. This recognised that defendants could not realistically value a claim until they had seen the plaintiff’s case in detail.
The Medical-Report Window (SI 186/2022)
The most consequential recent reform is SI 186/2022, which came into operation on 26 April 2022. The instrument substitutes Rule 1(9) and extends the 21-day window to cover the service of a medical report:
Notwithstanding sub-rule (7), in any case in which the plaintiff has, after the expiry of the time within which a defendant could make a payment into Court without leave, served: (i) a notice of replies to particulars, or (ii) additional particulars (without a request therefor), or (iii) a report of a medical practitioner concerning the plaintiff in a personal injuries action, in accordance with or for the purposes of Order 39, rule 46, the defendant may, thereupon, without leave, make a payment or increase any payment made into Court within 21 days from the date thereof upon notice to the plaintiff.
Order 22 Rule 1(9) RSC, as substituted by SI 186/2022
The amendment does not, on its face, distinguish between a liability report and a condition-and-prognosis report. The practical effect, as observed by the former President of the High Court, is that a defendant can now respond to late-served medical evidence by making or increasing a lodgment within 21 days, without having to seek the court’s leave. In medical negligence litigation, where condition-and-prognosis reports are routinely exchanged in the weeks before trial, this can move the financial pressure substantially closer to the courthouse steps.
Tender Offers and Qualified Parties (Rule 14)
Order 22 Rule 14 permits a defined class of institutional defendants to issue a Notice of Tender rather than physically depositing funds in court. The notice is made on one of the prescribed forms set out in Appendix C to the Rules: Form No. 4A where liability is denied, or Form No. 5A where liability is admitted. The notice carries the same legal weight as a lodgment, and the same non-disclosure and costs rules apply. The four categories of qualified party are: the State (Ministers, the Attorney General, the Government); parties indemnified by the State (covering hospitals and consultants indemnified by the State Claims Agency); authorised insurers; and the Motor Insurers’ Bureau of Ireland.
| Category | Typical context |
|---|---|
| State entities (Ministers, Attorney General, Government, the State) | Claims against government departments and statutory bodies |
| State-indemnified parties | Medical negligence claims against HSE hospitals and consultants indemnified by the State Claims Agency |
| Authorised insurers | Motor, employer liability, and public liability claims involving an insured defendant |
| Motor Insurers’ Bureau of Ireland (and Visiting Motor Insurers Bureau) | Claims involving uninsured or untraced drivers |
Multiple Defendants: Plaintiff Acceptance Under Rule 12 and Inter-Defendant Tenders Under Rule 15
Joint defendants can lodge separately or jointly. Where a plaintiff sues two or more defendants jointly or in the alternative, Order 22 Rule 12 RSC permits one or more of the defendants to pay money into court upon notice to the other defendants. This pattern is common in medical negligence, where a claimant may sue a hospital, a consultant, and a referring practitioner in a single action. The rule provides:
Money may be paid into Court under this Order by one or more of several defendants sued jointly or in the alternative upon notice to the other defendant or defendants. If the plaintiff elects within the time limited by this Order to accept the money paid into Court, he shall give notice as in rule 4 mentioned to each defendant and thereupon all further proceedings in the action or in respect of the specified cause or causes of action (as the case may be) shall be stayed and the money shall not be paid out except in pursuance of an order of the Court dealing with the whole costs of the action or cause or causes of action (as the case may be).
Order 22 Rule 12, Rules of the Superior Courts
The acceptance of a Rule 12 lodgment carries specific procedural consequences. If the plaintiff accepts the money, all further proceedings against the lodging defendants are stayed. The money cannot, however, be paid out to the plaintiff without a court order dealing with the entire costs of the action.
Where issues of contribution or apportionment of liability arise between co-defendants themselves, a separate mechanism applies. Order 22 Rule 15 RSC (inserted by SI 249 of 2005, effective 2 June 2005) governs “tenders between defendants”. Under Rule 15, where any issue arises in proceedings as to the apportionment of liability between defendants, and one or more of those defendants is a qualified party within the meaning of Rule 14, that defendant (the “offeror”) may make to any other defendant (the “offeree”) a written offer to pay a specified amount of the total damages for which the defendants may be liable to the plaintiff. If the offeree rejects the offer and the offeror’s eventual liability does not exceed the amount offered, the offeree is liable to the offeror for the costs of the apportionment issue from the date of the offer (unless the trial judge for special cause shown otherwise directs). Rule 15 sits in parallel with the third-party procedure under Order 16 Rule 12 and provides a tender mechanism on the inter-defendant apportionment question without involving the plaintiff.
Acceptance Procedure and the 14-Day Window
Acceptance is a strict, time-limited procedural step. Order 22 Rule 4 RSC fixes the plaintiff’s window for accepting a lodgment at “fourteen days of the receipt of notice of payment into Court, or within such further period as may be agreed upon by the parties”. Acceptance is effected by serving a Notice of Acceptance on the defendant within the window, in Form No. 6 in Appendix C.
On acceptance, the proceedings are stayed in respect of the accepted claim, and the plaintiff becomes entitled to draw down the lodged sum. The plaintiff is then entitled to tax their costs to the date of acceptance and, after a short statutory interval, sign judgment for those costs. In the Circuit Court the equivalent acceptance window under Order 15 Circuit Court Rules is 28 days, reflecting the lower-value claims and longer typical correspondence cycles in that jurisdiction. Where the lodgment is partial (covering some but not all causes of action in a multi-cause claim), acceptance may be made only as to specified causes if the lodgment is expressed to be in respect of those causes. Where the plaintiff is a minor, the 14-day automatic acceptance window does not operate: Section 63 of the Civil Liability Act 1961 requires court approval before any compromise takes effect, irrespective of the plaintiff’s wish to accept.
Non-Disclosure to the Trial Judge (Rule 7)
The fact that a lodgment or tender has been made, and the amount, is not disclosed to the trial judge until all issues of liability and quantum have been decided. The rule protects the integrity of the assessment by ensuring the judge is not subconsciously anchored by the defendant’s valuation. SI 396/2013 strengthened the equivalent non-disclosure rule for tender offers, aligning their treatment with lodgments.
Specialised Variations: Defamation, Admiralty, and Defended-Title Actions
Three statutory carve-outs sit outside the standard Order 22 framework. The general lodgment regime under Rule 1 does not apply uniformly across all civil actions. Section 29 of the Defamation Act 2009 provides a specialised lodgment mechanism for defamation proceedings:
In an action for damages for defamation the defendant may, upon giving notice in writing to the plaintiff, pay a sum of money into court in satisfaction of the action when filing his or her defence to the action. ... The defendant shall not be required to admit liability in an action for damages for defamation when making a payment to which this section applies.
Section 29(1) and 29(4), Defamation Act 2009
Section 29 sits alongside, but is distinct from, the “offer to make amends” procedure under Section 22 of the same Act, which combines an offer to publish a correction and apology with a payment of compensation. In admiralty actions, Order 22 Rule 1(4) RSC applies its own timing rules reflecting the in rem character of those proceedings. In actions where the defence raises a question of title to land, money may not be paid into court unless liability is explicitly admitted in the defence, departing from the standard Rule 1(7) discretion. These three carve-outs are noted here for completeness; the practical centre of gravity in Irish personal injury practice remains the standard Rule 1 regime and the Rule 14 tender mechanism.
The Other Six Sources: From Section 17 to Order 99
Six further instruments fill the architecture. Order 22 governs the procedure, but the wider statutory and rule framework shapes when an offer must be made, who may make it, and what happens to the costs if it succeeds or fails.
Section 17 of the Civil Liability and Courts Act 2004
Section 17 of the Civil Liability and Courts Act 2004 introduced a separate statutory regime for formal settlement offers in personal injury actions. Each party must, at a prescribed pre-trial date, serve a formal offer of settlement (or, in the case of a defendant, a notice that no offer will be made). The prescribed date was fixed by SI 169/2005.
Critically, Section 17(6) preserves the existing rules-of-court mechanism. The subsection provides:
This section is in addition to and not in substitution for any rule of court providing for the payment into court of a sum of money in satisfaction of a cause of action or the making of a tender, offer or payment without prejudice or otherwise in connection with the settlement of a personal injuries action.
Section 17(6), Civil Liability and Courts Act 2004
The two regimes coexist: a defendant may serve a Section 17 formal offer and a separate Order 22 lodgment in the same action, and the court will have regard to both when ruling on costs.
Section 51A of the PIAB Act 2003 and the Deemed Tender Regime
Section 51A of the Personal Injuries Assessment Board Act 2003 deals with the costs consequences where an Injuries Resolution Board assessment is rejected by the claimant but accepted by the respondent. The body is now known as the Injuries Resolution Board, formerly known as PIAB until 2023. Section 51A was substantially rewritten by the Personal Injuries Resolution Board Act 2022. The new subsection 51A(3A) came into operation on 13 February 2023.
The substituted subsection provides:
Subject to subsections (6) and (7), if, as respects a relevant claim to which this section applies, a claimant brings proceedings in accordance with this Act, a respondent, as the defendant in the relevant proceedings, shall be deemed to have made an offer of tender of payment pursuant to rules of court on the relevant date equal to the amount of the assessment in relation to the relevant claim concerned.
Section 51A(3A), Personal Injuries Assessment Board Act 2003 (substituted by Personal Injuries Resolution Board Act 2022, in force 13 February 2023)
The deeming language is critical: the accepted assessment is treated for costs purposes as if it were a formal tender lodged on the assessment date. A claimant who fails to recover more than the assessment at trial is then exposed to the standard cost-shifting consequence under Order 22 Rule 6. The court retains a narrow override under Section 51A(3A)(b) where it finds, on special cause shown, that the respondent was not in a position to pay the assessment sum on the relevant date.
The empirical context for the reform is significant. The Injuries Resolution Board Annual Report 2024 records 8,598 assessments of compensation made (down from 9,144 in 2023), with a total compensation value of €168 million, a median award of €13,100 and an average award of €19,482 across all claim categories. The respondent consent rate (the proportion of respondents agreeing to engage with the Board’s process) was 70 per cent, and the overall acceptance rate (the proportion of assessments accepted by both claimant and respondent) was 50 per cent. The 50 per cent of assessments in 2024 that did not result in mutual acceptance now carry materially greater costs exposure than any prior cohort, because every accepted respondent assessment that proceeds to court becomes a deemed Order 22 tender on the assessment date.
Section 169 of the Legal Services Regulation Act 2015
Section 169 of the Legal Services Regulation Act 2015, commenced on 7 October 2019, replaced the older common-law “costs follow the event” principle with a statutory framework. Section 169(1) provides:
A party who is entirely successful in civil proceedings is entitled to an award of costs against a party who is not successful in those proceedings, unless the court orders otherwise, having regard to the particular nature and circumstances of the case, and the conduct of the proceedings by the parties.
Section 169(1), Legal Services Regulation Act 2015
The seven listed factors in Section 169(1)(a) to (g) include, at subsection (f), “whether a party made an offer to settle the matter the subject of the proceedings, and if so, the date, terms and circumstances of that offer”. This is the statutory hook that brings every settlement offer, whether a formal Order 22 lodgment, a Section 17 offer, a deemed Section 51A tender, or a Calderbank letter, within the court’s costs discretion.
Murray J in Higgins v Irish Aviation Authority [2020] IECA 277 made a further observation. Although the phrase “costs follow the event” appears in the marginal note of Section 169, it does not appear in the substantive text of the section itself. The phrase has been “purged completely” from Order 99 of the Rules of the Superior Courts as recast in 2019. The doctrinal weight of the default rule has, on this view, softened in favour of a flexible discretion guided by the statutory factors.
Section 63 of the Civil Liability Act 1961
Where the plaintiff is a minor, Section 63 of the Civil Liability Act 1961 imposes a mandatory court-approval requirement on any compromise of the action. The 14-day automatic acceptance window under Order 22 Rule 5 does not operate in minor cases. Instead, the plaintiff’s next friend must apply to the court for a ruling, and the court must be satisfied that the settlement amount is in the best interests of the minor before the lodgment can be accepted.
Order 15 Circuit Court Rules: The Circuit Court Analog
Personal injury claims within the Circuit Court jurisdiction (currently up to €60,000) are governed by Order 15 of the Circuit Court Rules, as restated for Dublin and the non-Dublin Circuits. The acceptance window is 28 days rather than 14, and the rules differ slightly on the admission of liability. The substantive cost-shifting principle is the same as in the High Court.
Order 99 Rules 57–61 RSC: Lodgments at the Costs Adjudication Stage
Distinct from the action-stage Order 22 regime, Order 99 Rules 57 to 61 RSC provide for a parallel lodgment and tender mechanism operating at the costs adjudication stage. Where a party has been awarded costs to be adjudicated by the Legal Costs Adjudicator, the paying party may lodge a sum in satisfaction of those costs. The same cost-shifting logic applies: if the receiving party does not recover more than the lodged sum on adjudication, the paying party is entitled to its costs of the adjudication from the date of the lodgment.
How the Lodgment Regime Has Been Amended
Five statutory milestones shaped the modern regime. The Irish lodgment regime traces back to the original Rules of the Superior Courts 1986, but the modern shape of the practice has been determined by a sequence of amendments running from 2000 to 2023.
| Year | Instrument | Effect |
|---|---|---|
| 2000 | SI 328/2000 | Introduced the tender-in-lieu-of-lodgment mechanism for qualified parties, removing the obligation on insurers and State entities to physically deposit funds in court |
| 2005 | SI 169/2005 | Commenced Section 17 of the Civil Liability and Courts Act 2004, fixing the prescribed date for statutory formal offers in personal injury actions |
| 2013 | SI 396/2013 | Strengthened the non-disclosure rule for tender offers, aligning their treatment with cash lodgments under Rule 7 |
| 2022 | SI 186/2022 | Added the 21-day medical-report window to Rule 1(9), permitting late lodgment without leave following service of a medical report (effective 26 April 2022) |
| 2022–2023 | Personal Injuries Resolution Board Act 2022 (commenced in phases by SI 28/2023 and SI 681/2024) | Substituted Section 51A of the PIAB Act 2003, inserting the deemed-tender provision at Section 51A(3A); commenced 13 February 2023 |
The trajectory of the amendments shows a steady tightening of the costs pressure on plaintiffs. The 2000 reform made tender offers easier for insurers. The 2013 reform reinforced their non-disclosure. The 2022 reform expanded the windows in which a defendant could lodge without leave. The 2023 reform converted accepted Injuries Resolution Board assessments into deemed tenders. Across the two decades, the regime has moved consistently in the direction of giving defendants more, and earlier, tools to crystallise the financial risk that a plaintiff carries to trial.
Leading Cases Interpreting Lodgment and Tender Procedure
Six decisions define the modern lodgment doctrine. The case law on lodgments and tender offers spans nearly sixty years. It ranges across the public-policy foundation of the regime, the doctrine of late lodgment leave, the costs treatment of Calderbank-style offers, and the most recent Supreme Court guidance on the operation of Section 169 LSRA 2015.
Ely v Dargan [1967] IR 89
Holding: The Supreme Court (Ó Dálaigh CJ) identified a strong public policy interest in permitting defendants to make a lodgment, even “at the eleventh hour”, to deter unnecessary continuation of litigation. The discretion to grant leave was to be exercised in the widest possible terms.
Why it matters: Sixty years on, every late-lodgment-leave application still cites Ely. The case sets the permissive baseline: leave will generally be granted absent serious prejudice.
O'Malley v Hermann & Galway Clinic Doughiska Ltd [2022] IEHC 9
Holding: Coffey J granted leave under Order 22 Rule 1(7) for a late lodgment in a medical negligence action where settlement talks had broken down three months before trial. The court’s discretion under the Rule was described as “unqualified” and to be read in the “widest possible terms”. The standard for granting leave was articulated as: “absent mala fides, manifest unfairness or some other disentitling circumstance”, leave should be granted. However, to prevent undue litigation advantage, the court ordered that the lodgment would not take effect until the second day of the trial, preserving the plaintiff’s costs to that point.
Why it matters: O'Malley is the leading modern authority on late-lodgment leave. The case shows that the courts will use the equitable discretion in Rule 1(7) to attach conditions, rather than simply granting or refusing leave outright.
Absent mala fides, manifest unfairness or some other disentitling circumstance, the court should grant leave to make or increase a lodgment, having regard both to the public interest in permitting late lodgments to deter unnecessary litigation, and to the equitable consideration that the granting of leave should not confer undue litigation advantage on the defendant.
Coffey J, O'Malley v Hermann & Galway Clinic Doughiska Ltd [2022] IEHC 9 (judgment of 12 January 2022)
Higgins v Irish Aviation Authority [2020] IECA 277
Holding: Murray J in the Court of Appeal delivered the first substantive judicial interpretation of Section 169 of the Legal Services Regulation Act 2015 in the context of settlement offers. A Calderbank offer, he held, could “assume decisive importance in determining what order for costs is just”. Murray J also observed that the phrase “costs follow the event”, which had dominated Irish practice for decades, had been “purged completely” from the substantive text of Section 169 and the recast Order 99.
Why it matters: The case marked a doctrinal shift. The pre-LSRA default rule was reframed as a starting point subject to a non-exhaustive list of statutory factors. The Supreme Court returned to the issue in Higgins [2022] IESC 45.
In the particular circumstances in which an appeal is brought to this Court only against the assessment of the quantum of damages by the High Court, the facility for the making of offers of the kind referred to in these provisions can assume decisive importance in determining what order for costs is just.
Murray J, Higgins v Irish Aviation Authority [2020] IECA 277 (costs ruling delivered 9 October 2020)
Shannon v O'Sullivan [2016] IECA 93
Holding: Irvine J in the Court of Appeal upheld a costs order penalising plaintiffs who had refused Calderbank offers and then obtained appellate awards below the offer figures. The court characterised the question as whether “it would not be just and fair on the Defendants” for the plaintiffs to retain their full costs after rejecting offers that exceeded the proper award.
Why it matters: The first Court of Appeal endorsement of the Calderbank principle in Irish personal injury practice. The reasoning has since been folded into the Section 169(1)(f) statutory framework.
Veolia Water UK plc v Fingal County Council (No 2) [2006] IEHC 240, [2007] 2 IR 81
Holding: Clarke J (as he then was) established the modern Irish approach to issue-by-issue costs apportionment. Where a successful party has not succeeded on all issues argued, the court should consider whether the costs of all parties were increased by the additional unsuccessful issues, and should reflect that fact in its costs order. In some cases the court may not only deny the successful party its costs of the unsuccessful issue but actually award the unsuccessful party its costs of dealing with it.
Why it matters: Although Veolia predates the LSRA, its reasoning continues to govern issue apportionment under Section 169. It is the bridge between “costs follow the event” and the modern flexible discretion. The Supreme Court harmonised the two in ESB v Good [2025] IESC 40.
Where the winning party has not succeeded on all issues which were argued before the court then it seems to me that, ordinarily, the court should consider whether it is reasonable to assume that the costs of the parties in pursuing the set of issues before the court were increased by virtue of the successful party having raised additional issues upon which it was not successful. Where the court is so satisfied, then the court should attempt, as best it can, to reflect that fact in its order for costs.
per Clarke J in Veolia Water UK plc v Fingal County Council (No 2) [2006] IEHC 240 at [12]–[13]
Electricity Supply Board v Good & ors [2025] IESC 40
Holding: The Supreme Court adopted the “big issue” approach to costs allocation under Section 169. Where neither party is “entirely successful”, the court’s discretion is at large, guided by fairness and the statutory factors. Substantive success on the real contest outweighs formal narrow success on technical relief. The reasoning harmonises the pre-LSRA flexibility of Veolia with the post-LSRA statutory architecture.
Why it matters: This is the freshest doctrinal development on the costs treatment of offers. The decision recalibrates expectations for litigants, including public bodies that may obtain limited technical relief but lose the central question. It encourages strategic discipline in framing the issues at trial.
The Mathematics of Cost Penalties: Browne v Van Geene
A €260,111 win became a financial loss. The starkest recent illustration of how Order 22 Rule 6 operates in practice is the medical negligence action of Browne v Van Geene and Mount Carmel Medical Group (Kilkenny) Ltd trading as Aut Even Hospital [2017] IEHC 612. Mr Justice Barr delivered judgment on 20 October 2017.
The clinical facts were uncontested. The plaintiff underwent a total abdominal hysterectomy in April 2010. During the operation a suture was placed in the ureter leading to the left kidney, causing obstruction and damage that ultimately required the kidney to be removed in April 2013. Liability was admitted, and the trial proceeded as a quantum assessment alone.
Prior to trial the defendants made two lodgments, both rejected by the plaintiff on advice. The first, of €280,000, took effect on 27 September 2016. The second, an increased lodgment of €450,000, followed. Barr J’s judgment awarded the plaintiff €260,111 in total damages, an amount falling short of even the first lodgment. The default costs rule under Order 22 Rule 6 was triggered: the plaintiff recovered her costs only to 27 September 2016, and the defendants recovered their costs from that date through the entirety of trial preparation and the hearing itself. The two sets of costs were directed to be taxed and set off against each other, with any shortfall deducted from the plaintiff’s award.
The case captures the mathematics of lodgment risk in a single set of figures. A plaintiff who objectively succeeded on the clinical merits, in an admitted-liability action, with a quarter-of-a-million-euro award, still lost most of the financial benefit of that award to defence costs incurred after the lodgment date. The figures provide a cautionary discipline: the practical cost of rejecting a lodgment must be measured not against the headline damages but against the net recovery after costs.
Calderbank Offers and the Wider Settlement-Offer Architecture
The fourth limb sits outside Order 22. Irish practice recognises a fourth settlement mechanism alongside the formal Order 22 lodgment, the Section 17 statutory offer, and the deemed Section 51A tender: the Calderbank offer, a written settlement proposal made “without prejudice save as to costs”. Its name comes from the English Court of Appeal decision in Calderbank v Calderbank [1976] Fam 93, a matrimonial case in which the privilege boundary between liability and costs was articulated.
In Ireland, Calderbank offers were recognised in personal injury practice from at least O'Neill v Ryanair Ltd (No 2) [1992] 1 IR 160, and the Court of Appeal in Shannon v O'Sullivan [2016] IECA 93 confirmed their place in modern PI costs analysis. The Calderbank mechanism has now been substantially absorbed into the statutory framework of Section 169(1)(f) LSRA 2015, which directs courts to have regard to the terms and circumstances of any settlement offer when exercising costs discretion. In Ireland, Calderbank offers therefore operate as one factor within the Section 169 statutory framework rather than as a freestanding common-law doctrine. This differs from the position in England and Wales, where Part 36 of the Civil Procedure Rules 1998 now codifies the equivalent regime as a self-contained procedural code.
For the full doctrinal treatment of Calderbank offers, the Section 169 costs framework, and the interaction with costs differential orders, see the companion reference page on Costs Orders and Calderbank Letters in Irish Practice. The present page addresses Calderbank only as the fourth limb of the broader settlement-offer architecture.
Lodgments and Tender Offers in Practice
Practice turns on three doctrinal tensions. The integrated lodgment and tender regime, taken across all seven sources, produces three areas of doctrinal disagreement that practitioners must navigate when advising on offers.
Evaluating an Offer: A Six-Part Framework for Plaintiffs
The decision to accept or reject is the highest-stakes procedural choice in most personal injury actions. The case of Browne v Van Geene illustrates that the net financial outcome can diverge sharply from the headline damages. The framework below structures the analysis any plaintiff and solicitor should run through on receipt of a lodgment, tender, or deemed Section 51A tender.
- Award-range comparison. How does the offered amount compare to the realistic award range under the Personal Injuries Guidelines, held binding by the Supreme Court in Delaney v PIAB [2024] IESC 10? An offer materially below the Guidelines mid-range bears scrutiny; an offer at or above the upper-range warrants serious consideration.
- Costs exposure calculation. If the offer is rejected and the trial award falls short, what is the defendant’s likely post-offer costs bill, and how does the net recovery compare to acceptance now? The Browne v Van Geene mathematics provide a cautionary baseline.
- Particularisation and evidence completeness. Have all heads of claim (general damages, loss of earnings past and future, care, special damages) been fully particularised and supported by current medical, vocational, and actuarial evidence? An under-particularised claim invites under-valuation.
- Contributory negligence and apportionment risk. Is there a credible defendant case for contributory negligence, joint causation, or apportionment to a co-defendant? Any of these reduces the headline figure against which the offer is measured.
- Remaining procedural steps. What further steps (discovery, expert exchange, mediation, updated condition-and-prognosis reports) may reasonably shift the value range? An offer made before late-served evidence carries different weight than one made after.
- Defendant track record. What is the defendant’s pattern on offer increases, late-window lodgments, and willingness to pursue costs taxation after partial wins? Some defendants make conservative opening offers and routinely improve them; others adopt a take-it-or-leave-it posture.
Walkthrough: 0 of 6 expanded
Award-range comparison
Sub-considerations:
- Locate the relevant injury category in the Personal Injuries Guidelines.
- Identify the indicative mid-range and upper-range figures.
- Map the offered amount against the range. An offer in the lower quartile of the range bears scrutiny; an offer at or above the mid-range warrants serious consideration.
- Remember that the Guidelines have binding force per Delaney v PIAB [2024] IESC 10.
Costs exposure calculation
Sub-considerations:
- Estimate the defendant’s likely costs from the date of the offer through the conclusion of trial.
- Compare net recovery (award minus defendant post-offer costs) to acceptance now.
- Apply the calculator above as a sanity check.
- Reference Browne v Van Geene for the cautionary baseline.
Particularisation and evidence completeness
Sub-considerations:
- Are general damages, loss of earnings (past and future), care needs, and special damages all fully pleaded and quantified?
- Is the medical evidence current as of the latest condition-and-prognosis report?
- Are actuarial and vocational reports current where loss of earnings or care is claimed?
- An under-particularised claim invites under-valuation by the defendant.
Contributory negligence and apportionment risk
Sub-considerations:
- Is there a defendant case for contributory negligence under Section 34 of the Civil Liability Act 1961?
- Is joint causation pleaded or anticipated?
- If there are co-defendants, what apportionment risk exists between them?
- Each of these reduces the headline figure against which the offer is measured.
Remaining procedural steps
Sub-considerations:
- What discovery still has to be exchanged?
- Are expert reports complete on both sides, or is further exchange pending?
- Is mediation a realistic intermediate step that may surface a better offer?
- An offer made before late-served evidence carries different weight than one made after.
Defendant track record
Sub-considerations:
- What is this defendant’s pattern on offer increases as trial approaches?
- Has the defendant historically used late-window lodgments under Rule 1(9) or 1(10)?
- Does the defendant routinely pursue costs taxation aggressively after partial wins?
- Some defendants improve offers conservatively; others adopt a take-it-or-leave-it posture.
The framework is descriptive, not prescriptive. The weight of each factor varies by case. Plaintiffs should treat this as a structured starting point for solicitor consultation, not as a substitute for advice tailored to the specific evidence and forensic profile of the claim.
The Three Doctrinal Tensions
The integrated lodgment and tender regime, taken across all seven sources, produces three areas of doctrinal disagreement that practitioners must navigate when advising on offers.
The first tension is interpretive. Murray J in Higgins v IAA [2020] IECA 277 described the phrase “costs follow the event” as having been “purged completely” from the substantive text of Section 169. Mulcahy J in Burke v Mediahuis Ireland Ltd [2024] IEHC 424 reaffirmed the default position that the entirely successful party is entitled to costs, suggesting that the “starting point” remains substantively intact. The Supreme Court in ESB v Good [2025] IESC 40 reconciled the two views by adopting the “big issue” approach: the default applies where one party is entirely successful, but where neither party is, the discretion is at large.
The second tension is procedural. The relationship between the Order 22 Rule 1(9) medical-report window introduced in 2022 and the older Rule 1(7) leave application has not been comprehensively addressed in subsequent case law. The position remains that where a defendant falls outside the 21-day medical-report window, the leave principles of Ely v Dargan and O'Malley v Hermann continue to govern. The interaction between the two routes when both might in principle apply remains contestable.
The third tension concerns the deemed-tender provision in Section 51A(3A). The provision is silent on how the deemed tender interacts with contributory negligence findings. If a claimant’s award is reduced for contributory negligence below the assessment figure, it is not yet settled whether the deemed-tender consequence operates on the gross award or the net recovery. The Supreme Court has not directly addressed this question.
Cost-Penalty Outcome Calculator
Illustrative only. This calculator models scenario arithmetic under Order 22 Rule 6 RSC, the default Irish cost-shifting rule that “the plaintiff shall be entitled to the costs of the action up to the time when such payment was made, and the defendant shall be entitled to the costs of the action from that time” where the plaintiff fails to recover more than the lodgment at trial. The calculator does not capture every variable in real cost adjudication. It is not legal advice. Specific situations require consultation with a qualified solicitor.
Scenario outcomes
Enter values in all three fields to see scenario outcomes.
Frequently Asked Questions
When can a defendant make a lodgment without leave of the court?
Under Order 22 Rule 1 RSC, a defendant in a personal injury action can make a lodgment without leave at three points: when the Defence is delivered; within four months of service of the Notice of Trial; and within 21 days of receiving certain documents from the plaintiff after those windows have closed.
The third window, the most recently expanded, covers service of a notice of replies to particulars, additional particulars served without request, or, since 26 April 2022 under SI 186/2022, a medical practitioner’s report concerning the plaintiff. Outside these three windows, the defendant must apply to the High Court for leave under Rule 1(7), and the court has discretion to grant or refuse leave on terms.
Practitioner note: The 21-day medical-report window does not differentiate between liability reports and condition-and-prognosis reports. Late-served updated reports in the run-up to trial can therefore trigger a fresh leave-free lodgment window.
Read more: Order 22 RSC on courts.ie.
What is the difference between a lodgment and a tender offer?
A lodgment is an actual deposit of money into the court’s bank account by a defendant. A tender offer is a formal written offer made under Order 22 Rule 14 by a “qualified party”, which carries the same legal weight as a lodgment but requires no physical payment.
The four categories of qualified party are the State and Ministers, parties indemnified by the State (including HSE hospitals and consultants indemnified by the State Claims Agency), authorised insurers, and the Motor Insurers’ Bureau of Ireland. Once made, a tender offer is “deemed to be a lodgment” for all procedural and costs purposes, including the non-disclosure rules and the cost-shifting consequences under Rule 6.
Practitioner note: In commercial motor and employer liability practice, almost all defendant offers in High Court actions take the form of a tender offer rather than a cash lodgment, because the insurer issuing the offer is a qualified party.
Read more: The four qualified-party categories are set out in Order 22 Rule 14 RSC, available on courts.ie.
What happens if I do not beat a lodgment at trial?
If a plaintiff rejects a lodgment or tender offer and the trial judge awards an amount equal to or less than the offer, Order 22 Rule 6 RSC applies the default cost-shifting rule. The plaintiff recovers costs only to the date of the lodgment, and the defendant recovers costs from that date onward.
If the plaintiff does not accept ... the sum so paid in but proceeds with the action ... and is not awarded more than the amount paid into Court, then, unless the Judge at the trial shall for special cause shown and mentioned in the order otherwise direct ... the plaintiff shall be entitled to the costs of the action up to the time when such payment into Court was made ... the defendant shall be entitled to the costs of the action from the time such payment into Court was made.
Order 22 Rule 6, Rules of the Superior Courts
The two costs orders are then set off against each other. The practical consequence can be severe, as demonstrated in Browne v Van Geene [2017] IEHC 612, where the plaintiff was awarded €260,111 in an admitted-liability medical negligence action but lost most of that recovery to the defendants’ post-lodgment costs. The court retains discretion under Section 169 LSRA 2015 to depart from the default rule for “special cause shown and mentioned in the order”, but such departures are rare.
Practitioner note: The realistic question is not whether the headline award exceeds the lodgment, but whether the net recovery after the costs set-off does. A modest margin above the lodgment can still produce a net loss after defence costs.
Read more: For deeper analysis of the costs framework see our companion page on Costs Orders and Calderbank Letters.
Can the court grant leave for a late lodgment after settlement talks have failed?
Yes. In O'Malley v Hermann [2022] IEHC 9, Coffey J held that the fact that previous settlement talks had broken down was not, by itself, a basis for refusing leave. The court’s discretion under Order 22 Rule 1(7) is “unqualified” and to be read in the “widest possible terms”.
The standard, drawing on Ely v Dargan [1967] IR 89, is that leave should be granted “absent mala fides, manifest unfairness or some other disentitling circumstance”. The court may, however, attach conditions to ensure no undue litigation advantage is conferred. In O'Malley, leave was granted on the term that the lodgment would not take effect until the second day of the trial, preserving the plaintiff’s costs to that point.
Practitioner note: A plaintiff opposing a late-lodgment leave application should focus on identifying specific prejudice from the late timing rather than relying on the fact that earlier negotiations occurred. The court’s remedy will more often be a condition than a refusal.
Read more: The judgment in O'Malley v Hermann.
How does an accepted Injuries Resolution Board assessment become a tender?
The substituted Section 51A(3A) came into operation on 13 February 2023. A respondent who accepts an Injuries Resolution Board assessment that is subsequently rejected by the claimant is “deemed to have made an offer of tender of payment pursuant to rules of court” in an amount equal to the assessment.
If the claimant then proceeds to court and fails to recover more than the assessment figure, the standard Order 22 Rule 6 cost-shifting consequence applies. The reform converts an ordinary administrative assessment into a procedural object with substantive costs implications, and substantially increases the risk profile of a claimant’s decision to reject a Board award.
Practitioner note: The Board’s 2024 figures show 8,598 assessments with a median of €13,100 and an overall acceptance rate of 50 per cent (where both claimant and respondent accept the award). The cohort of assessments not mutually accepted now carries materially greater costs exposure than in any earlier period.
Read more: The substituted Section 51A text is available at revisedacts.lawreform.ie.
Are lodgments and tender offers disclosed to the trial judge?
No. Under Order 22 Rule 7 RSC, neither the fact that a lodgment has been made nor the amount may be communicated to the trial judge until all issues of liability and quantum have been decided. The same rule applies to tender offers, reinforced for tenders by SI 396/2013.
The non-disclosure rule protects the integrity of the trial on the merits. A judge who knew the defendant had valued the claim at a particular figure could be subconsciously anchored by that valuation when assessing damages. The rule is strict, and a breach can found grounds for a retrial. The rule applies equally to non-jury trials and to the rare jury cases that still arise in defamation and other limited contexts.
Practitioner note: The rule applies to the lodgment fact and amount, not to the existence of settlement negotiations as a general matter. Without-prejudice correspondence remains separately privileged.
Read more: Order 22 Rule 7 on courts.ie.
Glossary of Key Terms
Eight terms recur throughout this article. Each definition reflects the term’s settled meaning in Irish civil practice.
- Lodgment
- The deposit of a specified sum of money into court by a defendant under Order 22 of the Rules of the Superior Courts (or Order 15 of the Circuit Court Rules), made in satisfaction of the plaintiff’s claim. A lodgment may be made with or without an admission of liability.
- Tender Offer
- A formal written offer of payment in satisfaction of a civil claim, made by a “qualified party” under Order 22 Rule 14 RSC. Unlike a lodgment, no funds are physically deposited in court. A tender offer is deemed to be a lodgment for all procedural and costs purposes.
- Qualified Party
- A defendant entitled under Order 22 Rule 14 RSC to make a tender offer without depositing funds in court. The four categories are: the State (Ministers, Attorney General, Government); parties indemnified by the State (including HSE hospitals and consultants indemnified by the State Claims Agency); authorised insurers; and the Motor Insurers’ Bureau of Ireland.
- Calderbank Offer
- A written settlement proposal made “without prejudice save as to costs”, named after the English Court of Appeal decision in Calderbank v Calderbank [1976] Fam 93. In Ireland, Calderbank offers operate within the Section 169(1)(f) Legal Services Regulation Act 2015 statutory factor framework when the court exercises costs discretion.
- Deemed Tender
- An accepted Injuries Resolution Board assessment that, under Section 51A(3A) of the PIAB Act 2003 (substituted by the Personal Injuries Resolution Board Act 2022, in force 13 February 2023), is treated as a tender of payment made on the assessment date for the purpose of court costs consequences if the claimant subsequently fails to recover more than the assessment at trial.
- Tender of Amends (Offer to Make Amends)
- The settlement mechanism in defamation proceedings under Section 22 of the Defamation Act 2009. The defendant offers to publish a suitable correction and apology and to pay compensation as agreed or as the court determines. The Section 22 offer is distinct from a Section 29 lodgment, though both may operate in the same defamation action.
- Notice of Tender
- The formal written instrument by which a qualified party makes a tender offer under Order 22 Rule 14 RSC. The notice is made on Form No. 4A (where liability is denied) or Form No. 5A (where liability is admitted), set out in Appendix C to the Rules of the Superior Courts.
- Notice of Acceptance
- The formal written instrument by which a plaintiff accepts a lodgment or tender offer under Order 22 Rule 4 RSC. Acceptance must be served on the defendant within 14 days of receipt of the offer (or 28 days in the Circuit Court), unless the parties agree in writing on a longer period.
References
Primary Legislation
- Civil Liability Act 1961 (Act No. 41 of 1961), Section 63, irishstatutebook.ie.
- Personal Injuries Assessment Board Act 2003 (Act No. 46 of 2003), irishstatutebook.ie.
- Personal Injuries Assessment Board Act 2003, Section 51A (Revised Acts as in force), Law Reform Commission.
- Civil Liability and Courts Act 2004 (Act No. 31 of 2004), Section 17, irishstatutebook.ie.
- Defamation Act 2009 (Act No. 31 of 2009), Section 29, irishstatutebook.ie.
- Legal Services Regulation Act 2015 (Act No. 65 of 2015), Section 169, irishstatutebook.ie.
- Personal Injuries Resolution Board Act 2022 (Act No. 42 of 2022), irishstatutebook.ie.
Court Rules and Statutory Instruments
- Rules of the Superior Courts, Order 22 (Payment Into and Out of Court and Tender), courts.ie.
- Circuit Court Rules, Order 15 (Appearance, defence, lodgment, offer of payment in lieu of lodgment and counterclaim), courts.ie.
- Rules of the Superior Courts, Order 99 (Costs), Rules 57–61, courts.ie.
- Rules of the Superior Courts (No. 5) (Offer of Payment in Lieu of Lodgement) 2000, SI 328/2000, irishstatutebook.ie (inserted Order 22 Rule 14).
- Rules of the Superior Courts (Tender Between Defendants) 2005, SI 249/2005, irishstatutebook.ie (inserted Order 22 Rule 15).
- Civil Liability and Courts Act 2004 (Section 17) Order 2005, SI 169/2005, irishstatutebook.ie.
- Rules of the Superior Courts (Payments into Court) 2013, SI 396/2013, irishstatutebook.ie.
- Rules of the Superior Courts (Lodgment and Tender) 2022, SI 186/2022, irishstatutebook.ie (effective 26 April 2022; substituted Order 22 Rule 1(9)).
- Personal Injuries Resolution Board Act 2022 (Commencement of Certain Provisions) Order 2023, SI 28/2023, irishstatutebook.ie (commenced Section 51A(3A) PIAB Act on 13 February 2023).
Case Law
- Ely v Dargan [1967] IR 89 (Supreme Court, Ó Dálaigh CJ).
- O'Neill v Ryanair Ltd (No 2) [1992] 1 IR 160 (Supreme Court).
- Veolia Water UK plc v Fingal County Council (No 2) [2006] IEHC 240, [2007] 2 IR 81 (High Court, Clarke J, 24 August 2006).
- Shannon v O'Sullivan [2016] IECA 93 (Court of Appeal, Irvine J).
- Dardis v Poplovka [2017] IEHC 249 (High Court, Barr J, 28 April 2017).
- Browne v Van Geene and Mount Carmel Medical Group (Kilkenny) Ltd trading as Aut Even Hospital [2017] IEHC 612 (High Court, Barr J, 20 October 2017); cost ruling delivered 24 January 2018.
- Browne v Van Geene and Mount Carmel Medical Group (Kilkenny) Ltd [2020] IECA 253 (Court of Appeal, Noonan J, 24 September 2020) — affirming the cost ruling on appeal.
- Higgins v Irish Aviation Authority [2020] IECA 157 (Court of Appeal, Binchy J, 16 June 2020) — substantive judgment.
- Higgins v Irish Aviation Authority [2020] IECA 277 (Court of Appeal, Murray J, 9 October 2020) — cost ruling.
- Higgins v Irish Aviation Authority [2022] IESC 13 (Supreme Court, MacMenamin J, 7 March 2022).
- O'Malley v Hermann & Galway Clinic Doughiska Ltd [2022] IEHC 9 (High Court, Coffey J, 12 January 2022).
- Fox v Minister for Justice [2021] IESC 61, [2022] 3 IR 221 (Supreme Court).
- Delaney v Personal Injuries Assessment Board [2024] IESC 10 (Supreme Court, seven-judge bench: O'Donnell CJ, Charleton, Hogan, Murray, Collins, Faherty, Haughton JJ).
- Burke v Mediahuis Ireland Ltd & Ors [2024] IEHC 424 (High Court, Mulcahy J).
- Electricity Supply Board v Good & ors [2025] IESC 40 (Supreme Court, 8 October 2025) — five-judge panel (O'Donnell CJ, Dunne, Woulfe, Murray, Donnelly JJ) on the “big issue” approach to costs.
- Electricity Supply Board v Good & ors [2025] IESC 27 (Supreme Court, Murray J, 5 June 2025) — substantive judgment.
- Calderbank v Calderbank [1976] Fam 93 (English Court of Appeal) — cited for comparative context; the English Calderbank doctrine is not directly received in Irish law where Order 22 lodgments and tenders govern.
Reports and Empirical Sources
- Injuries Resolution Board, Annual Report 2024, injuries.ie.
- Personal Injuries Guidelines (Judicial Council, adopted 6 March 2021) — legally binding following Delaney v PIAB [2024] IESC 10 by majority of the Supreme Court (ratification under Section 30 Family Leave and Miscellaneous Provisions Act 2021).
Gary Matthews Solicitors
Medical negligence solicitors, Dublin
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