DR XI Part 36 claim

Question 1

What is a part 36 offer

Answer 1

A part 36 offer is a formal offer to settle a claim. It is meant to convince the offeree to settle early.

Question 2

How much time is allowed before the losing party was ordered to pay for the other’s party costs when a part 36 offer is beaten

Answer 2

If the results of continuing on to trail are less advantageous to the offeree than the offer was, the judge could make the offeree pay the offeror’s legal fees 21 days after the order is made

Question 3

Discuss formal requirement of a part 36 offer

Answer 3

By using a court form (N242A), a part 36 offer must “:

be in writing;

state clearly that it is made pursuant to CPR part 36;

specify a period for the relevant period (during which the offer cannot be withdrawn without the court’s permission);

state whether the offer relates to the whole or part of the claim;

if it has taken account of any counter-claim/

Question 4

When can a part 36 be made?

Answer 4

any time even before formal proceeding. pre-issue costs can be recovered if the offer beats the result.

at trial, a part 36 offer can still be accepted with court’s permission

Question 5

Define requests for clarification

Answer 5

IF thje term of a Part 36 offer are unclear, the offeree can request clarification within 7 days

Question 6

When can a Part 36 be withdrawn?

Answer 6

as long as the offeree has not accepted the offer, unless, within 7 days following the receipt of the notification of acceptance, with court permission, the offeror wants to withdraw relying on a change of circumstances

By the expiry of the relevant period, if no notice of acceptance has been served, the offeror may withdraw or amend the offer without permission

Question 7

Default relevant period

Answer 7

21 days

Question 8

The relation of costs award and relevant period

Answer 8

in most cases, the costs will be calculated up to the end of the relevant period, unless the court rules that the costs should over until the service of acceptance if the acceptance is made outside the period.

Question 9

What happens if a claimant rejects D’s part 36 offer and beats it?

Answer 9

D will be ordered to pay the claimant’s costs of the entire proceedings. The part 36 offer will have no effect.

Question 10

What happens if a claimant rejects D’s part 36 offer and fails to beat it?

Answer 10

The court, unless it considers unjust to do so, award D’s their costs on the standard basis from the date when the relevant period for acceptance expired. D may be awarded interest on those costs

Question 11

What happens if a defendant rejects C’s part 36 offer and the claimant fails to beat it?

Answer 11

C’s part 36 offer will have no effect.

Question 12

What happens if a defendant rejects C’s part 36 offer and the claimant beats it?

Answer 12

C will be awarded interest on the entirety of the damages awarded at an enhanced rate of up to 10% above base rate after the time for acceptance expired

D pays C’s costs incurred after the relevant period expired, assessed on indemnity basis + 10% interest above the base rate

D, as a losing party, will pay C’s costs up until the start of the relevant period on the standard basis

Question 13

in a damages claim, if D rejects C’s part 36 offer and the claimant beats it, how may some additional damage be awarded in favour of the claimant?

Answer 13

additional damages are awarded as an additional 10% on top of the sum awarded by the court for the first 500k

5% for any amount awarded over that mark

Question 14

Meaning of beating an offer

Answer 14

that a party, after rejecting a part 36 offer/having a part 36 offer rejected, obtains an equal or more advantageous result at trial.