Part 36 Offers

Question 1

(1) What are Part 36 Offers Labelled as?
(2) What does this mean?

Answer 1

(1) “Without prejudice save as to costs”
(2) ‘Privileged ‘(i.e. CANNOT be seen) until the judge decides costs

Question 2

What is the purpose of Part 36 Offers?

Answer 2

Encourage Parties to settle

Question 3

(1) Who can apply for a Part 36 Offer?
(2) When can a Part 36 Offer be made?

Answer 3

(1) EITHER Party
(2) ANY stage of proceedings (e.g. before proceedings begun)

Question 4

For a Part 36 Offer made by both a C and D to be VALID , what 4 formalities must be met?

Answer 4

(1) State ‘PART 36 OFFER’
(2) State re WHOLE / PART of Claim
(3) WRITING
(4) State ‘RELEVANT PERIOD’ - min 21 days

Question 5

For a Part 36 Offer made by a D (NOT a C) to be VALID by what 6 formalities must be met?

Answer 5

(1) State ‘PART 36 OFFER’
(2) State re WHOLE / PART of Claim
(3) WRITING
(4) State ‘RELEVANT PERIOD’ - AT LEAST 21 days
(5) SINGLE SUM
(6) PAY within 14 DAYS

Question 6

A valid Part 36 Offer must state the ‘Relevant Period’
(1) How long is the ‘Relevant Period’?
(2) Which Party pays the costs and for how long if the Part 36 Offer is accepted during the ‘Relevant Period’?

Answer 6

(1) AT LEAST 21 days (from OFFER MADE)
(2) D pays C’s costs UP TO ACCEPTANCE (regardless of if C or D made offer)

Question 7

If a Part 36 Offer is ACCEPTED by either a C or D, what 3 things take place?

Answer 7

(1) Proceedings STAYED
(2) SETTLEMENT SUM paid
(3) COST consequences (depending on offer ‘accepted’ during RP or not)

Question 8

What are the Part 36 COST consequences for an Offer ACCEPTED by either Party when:
(1) Offer accepted DURING ‘Relevant Period’
(2) Offer accepted AFTER ‘Relevant Period’
(a)
(b)
(3) What is Exception to rule in (2)?
(4) Will these be under ‘Standard’ or ‘Indemnity’ basis?

Answer 8

(1) D pays C’s COSTS up to ACCEPTANCE
(2)
(a) D pays C’s COSTS up to END RP &
(b) Offeree pays Offeror’s COSTS END RP to ACCEPTANCE
(3) UNLESS court ‘UNJUST’
(4) Standard

Question 9

What are the Part 36 Consequences when C makes Part 36 Offer and D Rejects:
(i) C loses at trial
(ii) C wins at trial but wins less P36 Offer

Answer 9

(i) NO P36 consequences (likely C pays D costs)
(ii) NO P36 consequences

Question 10

What are the 4 AREAS OF Part 36 Consequences when C makes Part 36 Offer and D Rejects &
(iii) C wins at trial and wins = or more P36 Offer

Answer 10

(1) ADDITIONAL DAMAGES
(2) INTEREST ON DAMAGES
(3) COSTS
(4) INTEREST ON COSTS

Question 11

when C makes a Part 36 offer and D Rejects & outcome C wins = or more P36 Offer:
What are the 3 rules on ADDITIONAL DAMAGES?

Answer 11

(1) £500,000 or less - 10%
(2) £5000 or more - 5%
(3) Up to MAX - £75,000

Question 12

when C makes a Part 36 offer and D Rejects & outcome C wins = or more P36 Offer:
What are the rules on INTEREST ON DAMAGES:
(1) UP TO END RP
(2) FROM END RP

Answer 12

(1) UP TO END RP - Rate in POC
(2) FROM END RP - Max 10% above Base Rate

Question 13

when C makes a Part 36 offer and D Rejects & outcome C wins = or more P36 Offer:
What are the rules on COSTS:
(1) UP TO END RP
(2) FROM END RP

Answer 13

(1) UP TO END RP - Standard Basis
(2) FROM END RP - Indemnity Basis

Question 14

when C makes a Part 36 offer and D Rejects & outcome C wins = or more P36 Offer:
What are the rules on INTEREST ON COSTS:
(1) UP TO END RP
(2) FROM END RP

Answer 14

(1) UP TO END RP - NO interest on costs
(2) FROM END RP - Max 10% above Base Rate

Question 15

What are the Part 36 Consequences when D makes Part 36 Offer and C Rejects:
(i) C loses at trial
(ii) C wins at trial and wins more P36 offer

Answer 15

(i) NO P36 consequences (likely C pays D costs)
(ii) NO P36 consequences

Question 16

What are the Part 36 Consequences when D makes Part 36 Offer and C Rejects:
(iii) C wins at trial but wins = or less P36 Offer
(1) UP TO END RP
(2) FROM END RP

Answer 16

‘SPLIT COST’ ORDER:
(1) UP TO END RP - D pays C Costs
(2) FROM END RP - C pays D Costs + Interest