Part 36

Question 1

What is a valid P36 offer? (5)

Answer 1

1. must be in writing
2. clear that it is a P36
3. period not less than 21 days to accept
4. relates to whole or part claim
5. accounts for any counterclaim

Question 2

What are the further 2 rules that apply to D’s P36 offer only?

Answer 2

1. single sum of money
2. paid within 14 days of enforcement

Question 3

What happens if a P36 offer is not effective?

Answer 3

The general rule on costs will apply

Question 4

How you accept a P36 offer? Must it also be filed at court?

Answer 4

1. written notice of acceptance.
2. Yes. If the case is issued

Question 5

What must you do asap after accepting a P36?

Answer 5

notify the court

Question 6

Why is it important to withdraw a P36 offer if you no longer want it open for acceptance?

Answer 6

offer remain open even after relevant period expires

Question 7

What must you do if you want to withdraw an offer before the relevant period or trial has begun?

Answer 7

must seek court permission

Question 8

What does C receive if they accept a P36 within the relevant period

Answer 8

costs up to the date of acceptance

Question 9

What does C receive/pay if they accept a P36 outside of the relevant period

Answer 9

receives: costs up to the date the relevant period expired

pays: costs of D for period after expiry of relevant period

Question 10

What must the courts always consider when deciding on cost consequences for P36 offers?

Answer 10

“unless unjust”

Question 11

What does C pay if they fail to obtain the same or more than D’s offer? (3) What cost rule applies for the period before relevant period expires?

Answer 11

1. D’s costs from the date the relevant period expires; and
2. interest on those costs
3. their own costs

Normal cost rules for period before expiry

Question 12

What are the 4 potential outcomes at trial for P36 claimant offeree?

Answer 12

1. Win and receive more than offer = D is penalised
2. Win and receive same as offer = D is penalised
3. Win and receive less than offer = split costs
4. Lose = normal costs rules

Question 13

What does D pay if C obtains the same or more than their offer? (4)

Answer 13

1. indemnity from end of relevant period;
2. interest on ^ costs not exceeding 10% above base rate;
3. interest on damages from end of relevant period not exceeding 10% above base rate; and
4. an additional amount based on award percentage

a. 10% up to £500,000 and 5% above £500,000
b. total amount capped at £75,000.