5.4 Introduction to Part 36

Question 1

Over what three things does the court have discretion in relation to costs?

Answer 1

CPR 44.2
(1)
The court has discretion as to –
(a)
whether costs are payable by one party to another;
(b)
the amount of those costs; and
(c)
when they are to be paid.

Question 2

What is a Part 36 offer?

Answer 2

A Part 36 offer is an offer to settle with specific costs consequences if the offer is rejected.

Question 3

Do the normal contractual rules of offer and acceptance apply to Part 36 offers?

Answer 3

No. Part 36 is a self-contained procedural code.

Question 4

What is the difference between a Part 36 offer and a Calderbank offer?

Answer 4

A Part 36 offer has additional formalities and specific costs consequences.

A Calderbank offer can be made informally and the costs consequences in Part 36 do not apply. However, the court can refer to Calderbank offers when assessing costs, to decide whether the refusing party acted reasonably in pursuing litigation.