Making, Varying and Accepting Part 36 Offers

Question 1

What are the requirements for a valid part 36 offer?

Answer 1

In writing
State it is made pursuant to Part 36
Specify a relevant period (of at least 21 days)
State whether offer applies to whole or part of claim
State whether it accounts for any counterclaim

Question 2

What is a relevant period in Part 36?

Answer 2

At least 21 days, which, if accepted, D is liable for C’s costs

Question 3

What is a rule on D’s offer?

Answer 3

Must offer to pay a single sum of money

Question 4

Can D offer to pay after 14 days after acceptance?

Answer 4

Will not be valid Part 36 unless accepted by offeree

Question 5

When is a Part 36 offer made?

Answer 5

When served on the offerree

Question 6

Can a Part 36 offer be made before proceedings? What is the effect?

Answer 6

Yes, it can. Part 36 consequences can still be applied to after

Question 7

What is the form of a Part 36 offer?

Answer 7

Letter format – must explicitly reference Part 36

Question 8

Can the offerree request clarification of an offer?

Answer 8

Yes, within 7 days of service

Question 9

Can a Part 36 offer be withdrawn if the offer is accepted?

Answer 9

No

Question 10

Can a Part 36 offer be withdrawn if trial has started?

Answer 10

Yes, with permission of court

Question 11

Can a Part 36 offer be withdrawn after relevant period has expired?

Answer 11

Yes, without permission

Question 12

Can a Part 36 offer be withdrawn before relevant period has expired?

Answer 12

Must apply to court within 7 days

Question 13

In what scenario would a Court allow withdrawal or variation?

Answer 13

If there has been a change in circumstances and it is in the interests of justice

Question 14

What are the possible outcomes of a Part 36 offer?

Answer 14

1) Offer accepted: Claim settled
2) Offer not accepted: Potential cost consequences

Question 15

How does a party accept a Part 36 offer?

Answer 15

Serve written notice of acceptance. If proceedings issued, file acceptance at court.

Question 16

What happens if a Part 36 offer has not been withdrawn after relevant period has expired?

Answer 16

It remains open for acceptance

Question 17

Can a Part 36 offer state that it will automatically be withdrawn after relevant period?

Answer 17

Yes

Question 18

What is the main consequence of accepting a Part 36 offer pre-trial?

Answer 18

The claim will be stayed and not proceed to trial

Question 19

When must D pay Part 36 offer if accepted?

Answer 19

D must pay within 14 days. If not, C can enter judgement

Question 20

What happens when an offer does not involve a single sum?

Answer 20

If terms are not met, party can apply to court to enforce settlement

Question 21

How long does a D have to pay for an accepted Part 36 offer in the absence of writing?

Answer 21

14 days

Question 22

What is the cost consequence of acceptance within the relevant period?

Answer 22

C can receive costs up to date of acceptance

Question 23

What is the cost consequence of acceptance after the relevant period?

Answer 23

Court determines costs – but unless unjust, C gets costs up to expiry of relevant period. Offerree pays offeror’s costs from end of relevant period to acceptance.

Question 24

What is the cost consequence of acceptance made within 21 days of trial?

Answer 24

Court will decide unless parties agree

Question 25

What happens if after a Part 36, the claimant abandons the rest of the claim?

Answer 25

C only gets costs for accepted part unless court orders otherwise

Question 26

What happens if after a Part 36, the claimant continues with the rest of the claim?

Answer 26

Court decides costs unless parties agree