Dispute Resolution Flashcards
What is a Part 36 offer?
It is a formal, written settlement offer which is designed to encourage parties to make and accept reasonable offers, through a system of financial incentives and consequences.
It is designed to encourage parties to settle early, as there are specific cost consequences if it is not accepted by trial. The outcome of acceptance is more certain for parties, than relying on the court’s discretion for costs.
They can be made by either party, at any stage of proceedings.
Part 36 offers must be genuine attempts to settle and must be ‘without prejudice save as to costs’
What is the fundamental rationale behind a Part 36 offer (from offeror’s / offeree’s perspective)?
Offeror’s perspective:
- Make a valid Part 36 offer and potentially obtain extra benefits at trial if the offer is not accepted
Offeree’s perspective:
- Receive a valid Part 36 offer and potentially face sanctions at trial if the offer is not accepted
