Consequences of Unaccepted Part 36 Offers at Trial

Question 1

Flashcard Question

Answer 1

Flashcard Answer

Question 2

What is the purpose of Part 36 at trial?

Answer 2

Encourages settlement
Penalizes parties who insist on trial despite reasonable offer
If reasonable offer rejected, penalties may apply

Question 3

What is a “trigger” in a D’s Part 36 offer?

Answer 3

When a C fails to obtain a judgement more advantageous than a D’s Part 36 offer

Question 4

What is meant by more advantageous than a D’s Part 36 offer?

Answer 4

The judgement must exceed the offer (even by 1 penny) not to trigger

Question 5

Does comparison of judgement and offer include interest in a D’s Part 36 offer?

Answer 5

It includes interest up to relevant period (but not after)

Question 6

What will the court order if they fail to beat D’s offer under Part 36?

Answer 6

1) C to pay D’s costs from end of relevant period
2) C to pay interest on those costs
3) C still bears own costs for this period

Question 7

What does Part 36 say about before the relevant period expiry in a D’s Part 36 offer?

Answer 7

Part 36 not applicable.

Question 8

What happens to costs for period before relevant period expired where a D’s Part 36 offer beats the judgement?

Answer 8

1) If C wins, D pays costs up to relevant period
2) If D wins, C pays costs up to relevant period
But all in court’s discretion

Question 9

What is a trigger in C’s Part 36 offer?

Answer 9

Judgement against D is at least as advantageous to the C as the proposals contained in a C’s Part 36 offer

Question 10

What is meant by at least as advantageous in C’s Part 36 Offer?

Answer 10

Equal to or better than C’s offer

Question 11

When do penalties apply to D in a C’s Part 36 offer?

Answer 11

If judgement meets or exceeds the offer made by C

Question 12

What are the consequences for the Defendant failing to accept a Part 36 offer by C which is at least as advantageous?

Answer 12

1) Interest up to 10% above base rate
2) Indemnity costs (instead of standard costs)
3) Interest on all costs
4) Additional penalty

Question 13

What are the penalties that may hit the Defendant?

Answer 13

1) 10% of award up to £500,000
2) 5% of any amount above £500,000
3) Penalties capped at £75,000

Question 14

What will the court consider when considering Part 36 offer?

Answer 14

1) Terms of Part 36 offer
2) Stage in proceedings where offer was made
3) Information available to parties
4) Conduct in relation to exchange of information

Question 15

In which scenarios does Part 36 not apply?

Answer 15

1) Offer made within 21 days of trial
2) Offer withdrawn before trial
3) Offer changed to be less advantageous

Question 16

What is required for full Part 36 protection?

Answer 16

1) Make offers at least 21 days before trial
2) Leave the offer open